New Delhi: Indian state-run lender UCO Bank said that it has reduced interest rates by 25-150 basis points on home, car, educational, micro, small and medium enterprises and agricultural loans with immediate effect.
The lending rates reduction came just few days after the Reserve Bank of India cut the cash reserve ratio (CRR), or the portion of deposits that banks have to keep with the central bank, by 25 basis points to 4.5%.
UCO Bank has cut interest rates on home loans by 25 basis points to 10.50%; car loans by 50 basis points to 10.75%; and educational loans by 150 basis to 12.75%, the bank said in a statement.
Similarly, the lender has also reduced interest rates on advances above Rs 10 million to the micro, small and medium enterprises (MSME) and agriculture sectors by 25-150 basis points, it added.
Earlier Tuesday, India's largest lender State Bank of India cut its base rate -- the benchmark for pricing all loans -- by 25 basis points to 9.75%, a day after the CRR cut.