SBI customers ALERT! No more repo rate-linked home loan scheme for buyers; here is why

The country's largest lender, State Bank of India (SBI) has withdrawn the repo-rate linked home loan scheme for its customers - on a temporary basis. Now, the customers of the bank will not get repo-rate linked home loans any more. SBI, on Twitter, while responding to a customer's query said that RLLR (repo-linked lending rate) has been withdrawn. SBI was the first bank to launch a home loan scheme linked to Reserve Bank of India's repo rate in July, this year. This marks a a big U-turn in policy.

SBI tweeted this information when it replied on on Twitter to @yashuk22 who wanted to know about details and charges of converting his existing home loan to the repo-rate linked product. SBI wrote, "Kindly note that RLLR based home loan scheme have been withdrawn. You can get the home loan migrated to MCLR based home loan."

It is important to note that the withdrawal of repo rate linked home loan scheme from SBI comes ahead of the RBI's mandate to banks to link new floating rate home, auto loans with external benchmarks, from October 1. However, as of now those who have already borrowed under the repo rate linked scheme can continue under the scheme.

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The main reason behind this withdrawal decision is not yet specified by the authority, however it will be cleared in coming few days that why SBI has discontinued the repo-rate linked home loan scheme for its customers.