Mumbai, Mar 27 (UNI) In a move to boost its credit offtake, public sector lender Allahabad Bank today announced a cut in the benchmark prime lending rate (BPLR) by 25 basis points to 13.00 per cent from 13.25 earlier.
The rate cut would be effective from April 1, the Bank said in a statement.
''The reduction in BPLR has been announced having regard to present market scenario and the need to provide credit to productive sectors at affordable rate,'' the Bank said.
Due to the above change in the BPLR, all the existing interest rates linked to BPLR, will be applicable on all existing and future working capital and term loans, the Bank said.
Allahabad Bank has already announced a cut in the interest rate of fresh housing loans by 25 basis points in both floating and fixed term loans with effect from April 1, for loans up to Rs 20 lacs on all maturities.
With the present cut in BPLR, in actual terms, interest on housing loans up to Rs 20 lacs in floating term loan will stand reduced by 50 basis points for all fresh sanctions, the Bank added.
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