Bank of India cuts interest rates on retail loans

State-run Bank of India has reduced its interest rates on retail loans by between 25 basis points and 250 basis points effective on February 1, a senior official said on Monday.

The rates on auto loans and personal loans have been reduced by 250 basis points while the rates on home loans of up to 2 million rupees have been cut by 25 basis points, D Krishnamurthy, general manager of credit at the bank said.

The revised rate for home loans up to 2 million rupees is 9.75 per cent, he said. The interest rates on educational loans have also been reduced by 100 basis points, he added.

Bank of India has left its prime lending rate, or the rate at which it lends to its best borrowers, intact at 13.25 percent.

Earlier on Monday, the country's top lender State Bank of India has cut its prime lending rate by 25 basis points to 12.5 percent with effect from February 16.