• search
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

SBI adopts repo rate as external benchmark for home loans, effective October 1

By Simran Kashyap
|

Mumbai, Sep 23: State Bank of India (SBI) on Monday said it has adopted repo rate as the external benchmark for all floating rate loans for MSME, home and retail loans, from October 1, 2019.

SBI adopts repo rate as external benchmark for home loans, effective October 1

On September 4, the Reserve Bank of India (RBI) had mandated all banks to link all new floating rate personal or retail loans and floating rate loans to micro, small and medium enterprises (MSMEs) to an external benchmark from October 1 onwards.

SBI account holder? Now you can withdraw cash from ATM without a debit card

"We have decided to adopt repo rate as the external benchmark for all floating rate loans for MSME, housing and retail loans effective October 1, 2019," the bank said in a release.

The RBI gave the banks options to benchmark their floating rate loans either to repo rate, three-month or six-month treasury bills or any benchmark market interest rate published by Financial Benchmarks India Private (FBIL). The bank has also extended the external benchmark-based lending to medium enterprises, to boost lending to the MSME sector as a whole.

It had introduced floating rate home loans effective July 1, 2019, but has made some modifications in the scheme effective October 1, 2019, to comply with the latest regulatory guidelines, the release said.

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more