SBI adopts repo rate! Good news for housing, retail loan-takers! Check onlinesbi.com

Country’s largest lender State Bank of India (SBI) has decided to adopt Repo Rate as the external benchmark for all floating rate loans for MSME, housing and retail loans effective October 1, 2019, as per RBI’s notification dated 4th Sept 2019. SBI (onlinesbi.com) voluntarily extends the external benchmark based lending to Medium Enterprises also, to boost lending to the MSME sector as a whole. 

SBI had introduced floating rate home loans effective July 1, 2019. A few modifications have been made in the scheme effective 1st October 2019 to comply with the latest regulatory guidelines.

Earlier, SBI had withdrawn the repo-rate linked home loan scheme, which was mentioned on its official Twitter handle while responding to a customer's query. "Kindly note that RLLR based home loan scheme has been withdrawn. You can get the home loan migrated to MCLR based home loan," it had stated earlier.

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RLLR or repo-linked lending rate means that any changes in the key interest rate by the central bank are passed on directly to the customers. While MCLR or marginal cost-based lending rate is the rate to which all of the bank's home loans are linked.

State Bank of India (SBI), the largest commercial bank in terms of assets, deposits, branches, customers, and employees; is also the largest mortgage lender in the country. As on June 30, 2019, the bank has a deposit base of over Rs 28 lakh crore with CASA ratio of 45.1% and advances of over Rs 19 lakh crore.