EXTERNAL BENCHMARK LINKED LOAN
The events that led to external benchmarking of loans and what borrowers should do now
The year 2019 saw the shift in the way interest rates loans to be charged. The Reserve Bank of India announced that with effect from October 1 interest rate on all new floating loans has to be linked to any of the four external benchmarks.
SBI reduces external benchmark rate by 25 bps; loans to get cheaper
The revised effective benchmark lending rate of 7.8 percent (down from 8....
Home loan interest rates linked to repo rate
Here are the interest rate on home loans charged by the banks under the external benchmark regim...
SBI to refund home loan borrowers if builder delays project
The scheme can be availed for projects where the maximum home price is upto Rs 2.5 crores.
Questions for 2020: Loans become cheaper?
Competing with private companies for limited resources could cap the room for RBI to cut interest rates. Even if it does, market rates won’t ease due to higher government debt. Also, with inflation being predicted to ease by the second half of 2020 towards the target of 4%, prospects for sharp rate cuts diminish.
Top 5 banks' home loan interest rates
The Reserve Bank of India has directed banks to link their lending interest rate to an external benchmark rate such as repo rate. The aim is to provide greater transparency and faster transmission of changes in the policy rates.
HDFC slashes home loan rate by 0.05 per cent
"HDFC reduces its Retail Prime Lending Rate (RPLR) on housing loans, on which its adjustable rate home loans (ARHL) are benchmarked by 5 basis points with effect from January 6, 2020," the mortgage lender said in a statement.
Allahabad Bank launches external benchmark linked loans for retail borrowers
With the introduction of these products, the bank is passing on the benefit of lower interest rate in the range of 5-150 bps from the existing rate of interest under MCLR.
From Oct, loans to be linked to external benchmarks. How will this impact borrowers?
Loans linked to external benchmarks are going to be the norm from October 1.
Bank of Baroda to pass on RBI's repo rate cut benefit to external benchmark linked loans
Interest rates on home and auto loans are available from 8.1 percent and 8.6 percent, respectively, as per the release.
Same mechanism for loans, liabilities: HDFC may link rates to external benchmarks
Move to be discussed at next asset liability committee meeting to be held in two weeks.
Central Bank of India reduces repo-based lending rate by 25 bps
After the Reserve Bank of India cut the repo rate for the consecutive time this year on Friday, many banks too have followed suit and reduced interest rates on their loans.
Mandatory to link loans for housing, autos, MSEs to external benchmark: RBI to banks
With a view to allow faster transmission of rate cuts to consumers, the Reserve Bank of India on Wednesday said the banks must mandatorily l...
RBI makes it mandatory for banks to link retail, SME loans to external benchmark
Existing loans linked to the MCLR, Base Rate or BPLR will continue till repayment or renewal.
ICICI Bank, Bank of Maharashtra cut MCLR, HDFC Bank maintains: Who has the lowest rate?
According to the HDFC bank’s website, the latest interest rate will be effective from January 7, 2020. All MCLR rates stands unchanged. 6-month MCLR stands at 8 bps, 1-year at 8.15 percent, 2-year at 8.25 percent and the 3-year rate at 8.35 percent.
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