SEARCHED FOR:EXTERNAL BENCHMARKING LOAN
Indian Bank cuts one-year MCLR rate by 5 basis points
Most of the consumer loans such as personal, auto and home were priced on the basis of the one-year MCLR prior to the introduction of repo-linked lending rate (RLLR).
RBI determined to move to external benchmark on October 1
Also, studying possibility of linking NBFC lending rates to such benchmarks.
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 ...
How will borrowers' EMIs be reset after RBI decision to link loans to external benchmarks?
From October 1, 2019, any loan taken will be linked to any one of the 4 external benchmarks specified by RBI.
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.
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.
Home loan interest rates linked to repo rate
Here is the interest rate on home loans charged by the banks under the external benchmark regime. The interest rate is liked to the RBI repo rate. The table given below is applicable to salaried individuals and self-employed persons.
Link loans to benchmarks: RBI to banks
The RBI just made a big push to make transmission of monetary policy more effective.
Interest rates transmission improved during 2019-20, according to RBI report
This was catalysed by the mandated linking of the interest rates on new loans to certain sectors such as personal and micro, small and medium enterprises (MSME), effective October 2019, to an external benchmark, the Reserve Bank said in its annual report.
RBI defers linking loan interest rates to external benchmark
"It has been decided to hold further consultations with stakeholders and work out an effective mechanism for transmission of rates," said the RBI statement.
RBI makes it mandatory for banks to link lending rate to external benchmark
Banks now don't have any excuse to not pass on rate cut benefits to consumers.
Federal Bank to link savings deposit rate to external benchmarks
The Federal Bank said from September 1 its savings deposits up to Rs 2 lakh will earn interest in tandem with the repo rate.
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.
New home loan takers to gain instantly from RBI cut
On an average, home loan rates are likely to fall by 25 basis points for new borrowers.
RBI keeps repo rate unchanged: What this means for FD investors, home loan borrowers
A status quo on rates could be good news for fixed deposit investors as banks have been continuously cutting rates on deposits for more than a year now. For borrowers though, a pause on rate cuts by the apex bank could mean that banks too will pause cutting interest rates on loans.