The Reserve Bank of India has issued a circular dated September 4, 2019, making it mandatory for all new floating rate loans from October 1, 2019, to be linked to an external benchmark. This applies to all floating rate retail and MSME loans. What does this mean for you if you are an existing borrower or plan to take a new loan? Before we jump on the new announcements, … [Read more...] about Home Loans from October 1, 2019, to be linked to External Benchmark
repo rate linked home loan
If you are a home loan borrower, I am sure you have been frustrated by your bank not passing the interest rate cuts to you. Every new iteration of loan benchmark (PLR, Base Rate, MCLR) gives you renewed hope, but nothing seems to change. Now, there is enthusiasm about Repo rate linked home loans. Though I am optimistic, we will see how this pans out. While we are worrying about … [Read more...] about How a Negative Interest Rate Home Loan would work?
Home loan interest rate benchmarks have kept on changing over the last decade. We used to have the Prime Lending Rate (PLR), which was replaced by Base Rate. The base rate, in turn, was replaced by the Marginal Cost of Funds based lending rate (MCLR) a couple of years back. Now, SBI is launching a home loan product where the benchmark is linked to the Repo rate. Internal … [Read more...] about PLR, Base Rate, MCLR and now RLLR (Repo rate linked lending rate)