MUMBAI: Struggling with slackening credit growth, expected to decline further, Indian banks have started lowering interest rates and easing credit score requirements for retail customers to push new loans.

At least four banks, Bank of Baroda, Bank of India, Union Bank of India and Bank of Maharashtra have introduced these loans for their existing borrowers and salary account holders.

The loans, given as part of their covid-19 package, are for a maximum tenor of 36 to 60 months. Three large lenders, Bank of Baroda, Bank of India and Union Bank of India have lowered interest rates by close to 200 basis points (bps) for these loans.

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