SEARCHED FOR:EXTERNAL BENCHMARKING LOAN
Saying goodbye to Libor, the world’s most valuable benchmark
Transition to alternative reference rates will involve considerable efforts for Libor users.
IBA asks banks for Libor alternative
MIFOR is priced after adding a mark-up over Libor, which will cease to exist globally after 2021.
Loans: Festive season offers and should you take them
During festival season, banks come out with various special loan offers. These loan off...
SBI cuts lending rates and interest rates on savings bank deposits
The state-owned bank had recently cut its external benchmark based lending rate by 75 basis points, passing on its entire RBI repo rate cut benefit to its borrowers.
Here is why RBI wants leading rates to be linked with external benchmark rates
As of now, banks set lending rates based on marginal cost of lending rate (MCLR) formula, which RBI feels has not delivered effective transmission of monetary policy.
Home loans likely to get cheaper from this week
As banks shift to a new system borrowers could be paying less on their mortgages .
SBI links retail and MSME loans to repo rate
Some other banks have also linked their loans to an external benchmark.
Bad loans of public sector banks fall to Rs 7.27 lakh crore at end of Sept 2019: Nirmala Sitharaman
"The government has instituted comprehensive reforms in PSBs to improve, governance, underwriting, monitoring and recovery, and has leveraged technology in all aspects of banking, resulting in reduction in their NPAs," Sitharaman said in written reply to a question in the Lok Sabha.
Repo-linked loans: Choosing a lender to be much easier as only 2 criteria for comparing loans
Borrowers no longer need to wait for their banks to react in response to rate cuts or rate hikes.
Existing bank loans turn cheaper, a year after the beginning of rate cut cycle
The transmission has been slow for new loans even as RBI cut the benchmark policy rate by 135 basis points since February 2019 but it was non existent or negative for existing borrowers. Some existing borrowers had paid monthly instalments at higher rates during the same period.
SBI plans to review repo-linked home loan
The repo-linked lending rate is a positive development as both customers and in many cases, those distributing the loans were not aware of the features of the repo-linked rate.
Repo-linked home loan rates can be volatile
The cost of repo-linked loans may come down over the years, but EMIs may not drop proportionately.
Banks plan to have new benchmark model for deposit & lending rates
Some lenders are already offering retail products linked to the RBI benchmark or government securities.
Bank of Maharashtra to link retail loans with repo rate
The inter-bank meeting, held under the aegis of the State Level Bankers' Committee (SLBC), was organised by BoM, convenor, SLBC, Maharashtra State.
SBI reduces MCLR across all tenures by up to 15 bps
Effective from March 10, 2020, the one-year is 7.75 per cent down from 7.85 per cent earlier. Similarly, three-month MCLR now stands at7.50 per cent, down from 7.65 per cent by 15 bps.