Axis Bank cuts base interest rate by 0.35 percentage points to 9.5%

axisbankFollowing a steep 0.5 percentage point cut in policy rates by the Reserve Bank of India, Axis Bank — one of India’s largest lenders — has cut its base interest rate to 9.50% from 9.85%.

This will mean lower EMIs for hundreds of thousands of its floating loan customers.

The cut is with effect from October 5, 2015.

“Accordingly, the effective rate applicable to various fund based credit and credit limits which are linked to the Bank’s Base Rate will reduce by 35 basis points,” the bank said.

Other banks that have cut base rates include SBI, which reduced it by 0.4 percentage points to 9.3%, Bank of India, which cut its rate by 25 bps to 9.7% and Andhra Bank, which cut by 25 bps to 9.75%.

Oriental Bank of Commerce has also cut rates by 20 bps to 9.7% while State Bank of Travancore reduced its base rate by 20 bps to 9.95%.

ICICI Bank and HDFC Bank are also expected to announce rate cuts soon.

Base rate is the minimum rate of interest that a bank is allowed to charge from its customers.
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