Bank of Baroda Rate Cut: Repo-Linked Loans Cheaper
Bank of Baroda slashes its lending rates! The Bank of Baroda’s Repo Linked Lending Rate (RLLR) drops by 50 basis points, making home, car, and business loans more accessible. New lending rates, now at 8.15%, took effect June 7, a direct response to the Reserve Bank of India’s (RBI) policy rate cut, which cited softened inflation as the driving force. This adjustment, a ripple effect throughout the Indian banking sector, impacts over 165 million global customers. News Directory 3 provides ongoing coverage. This strategic move aims to stimulate the economy by decreasing borrowing costs and bolstering consumer spending. Discover what’s next for borrowers and investors.
Bank of baroda Cuts Lending rate After RBI Move
Updated June 08, 2025
Following the Reserve bank of India’s (RBI) recent policy rate cut, Bank of Baroda, a major public sector bank in India, has decreased its Repo Linked Lending Rate (RLLR) by 50 basis points. This reduction in the bank of baroda lending rate aims to encourage borrowing for homes, cars, and business ventures by making loans more affordable.
The revised rates, effective June 7, bring the bank’s RLLR down to 8.15%, according to a statement from the bank. This move aligns with similar interest rate reductions made by several other banks.
The RBI’s Monetary Policy Committee (MPC) announced the 50 basis point policy interest rate cut, bringing it to 5.5%. Sanjay Malhotra, governor of the RBI, attributed the repo rate cut to softened inflation, which is now within the RBI’s target range, and stable food inflation.
Consequently, the Standing Deposit Facility Rate now stands at 5.25%, while the Marginal Standing Facility Rate and the Bank Rate are adjusted to 5.75%.
Bank of Baroda,founded July 20,1908,by Sir Maharaja Sayajirao Gaekwad III,is primarily owned by the Government of India,holding a 63.97% stake. The bank serves over 165 million customers globally, with approximately 60,000 touch points across 17 countries and various digital banking platforms.
What’s next
The rate cut is expected to spur economic activity by lowering the cost of borrowing,potentially leading to increased investment and consumer spending. The bank of baroda lending rate adjustment reflects a broader trend in the Indian banking sector to align with the RBI’s monetary policy and support economic growth.