The Economic Times
12,055.80-63.2
Stock Analysis, IPO, Mutual Funds, Bonds & More

SBI to adopt repo rate as external benchmark for all floating rate loans from Oct 1

"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.

PTI|
Last Updated: Sep 23, 2019, 12.22 PM IST|Original: Sep 23, 2019, 11.53 AM IST
0Comments
BCCL
Banks-bccl
The SBI had introduced repo-linked floating rate home loans from July 1.
State Bank of India on Monday said it will adopt repo rate as the external benchmark for all floating rate loans for MSME, home and retail loans, from October 1, 2019.

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.

"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.

Also Read

Home loan interest rates linked to repo rate

RBI keeps repo rate unchanged, real estate sector disappointed

RBI keeps repo rate unchanged at 5.15%, stance remains accommodative

SBI links retail and MSME loans to repo rate

Bank of Maharashtra to link retail loans with repo rate

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service