OBC Home Loan

News About Oriental Bank Home Loan

• OBC Cuts MCLR by up to 25 BPS Across Tenures

  Oriental Bank of Commerce (OBC), a public sector bank operating in the country has cut the marginal cost of funds-based lending rates (MCLR) by up to 25 basis points across the various tenors on September 10. The rates for the overnight tenure has come down to 7.90% after the bank cut the rates by 25 points. The new MCLR for the one-month, three-month, and six-month tenures were 8%, 8.15%, and 8.30% respectively. The rates for the 1-year tenure, the benchmark against which most customer loans are priced in the country have been cut by 15 basis points and currently stands at 8.40%.

  It needs to be mentioned here that the OBC along with United Bank of India will merge with Punjab National Bank as part of the government’s mega merger plan that involves 10 public sector banks.

  

  11 September 2019

• New interest rates provided by Oriental Bank on vehicle and home loans

  On 27 August 2019, Oriental Bank of Commerce had said that personal loans and home loans can be availed by customers at interest rates that are repo-linked. The new interest rates will start at 8.70% and 8.35%, respectively.

  According to the release made by the bank, a new variant of personal loans and home loan products have been launched by Oriental Bank of Commerce that are linked to the repo rates of the Reserve Bank of India (RBI). According to Oriental Bank of Commerce, customers have the option to choose between interest rates that are repo rate linked to a benchmark that is external or an interest rate that is Marginal Cost of Funds-based Lending Rate (MCLR) linked. The MCLR linked rates are indexed to the cost of funds of the bank. The statement further said that the interest rates will start at 8.35% and 8.70% for home loans and personal loans, respectively. The move provides a benefit of 20 bps and 25 bps, respectively, and is in line with the current MCLR. The reduction of interest rates comes after the Governor of Reserve Bank requested banks on 26 August 2019 to link their deposit and loan rates to the repo rates.

  

  30 August 2019

• OBC cuts MCLR for various tenures by up to 10 basis points

  Oriental Bank of Commerce (OBC) on Thursday cut the marginal cost of funds-based lending rate (MCLR) for various tenures by up to 10 bps. The bank reduced the MCLR for the overnight and one-month tenure by 10 bps from the existing rates of 8.30% and 8.35% respectively. The new rates for the mentioned tenures were 8.20% and 8.25%.

  The state-owned lender also cut the rates for the three-month, six-month and one-year tenure loans. The MCLR for the tenures were slashed by 5 basis points to be 8.45%, 8.55%, and 8.65% respectively.

  It needs to be mentioned here that the country’s largest lender i.e., State Bank of India on Tuesday had lowered its lending rates by 5 basis points across all the tenures. Previously, lenders like IDBI Bank, Corporation Bank, and Bank of Maharashtra had cut their MCLR by 5-10 bps. It is noteworthy to mention here that RBI in its monetary policy review held in the month of June reduced the repo rate by 25 basis points for the third time in 2019.

  

  12 July 2019