Oriental Bank of Commerce offers home, vehicle loans at new repo-linked rates of 8.35-8.75%

State-owned Oriental Bank of Commerce (OBC) on Tuesday said customers can now avail home and vehicle loans at repo-linked interest rates starting from 8.35 percent and 8.70 percent, respectively

Press Trust of India August 20, 2019 19:51:29 IST
Oriental Bank of Commerce offers home, vehicle loans at new repo-linked rates of 8.35-8.75%
  • OBC has launched a new variant of home loan and vehicle loan products linked to the Reserve Bank of India's repo rate, the bank said in a release

  • Customers will have the option to select between MCLR linked rate, which is indexed to the bank's cost of funds or a repo rate linked to the external benchmark, bank said

  • The decision comes in the backdrop of Reserve Bank Governor Shaktikanta Das asking banks on Monday to link their loan as well as deposit rates to the repo, the rate at which the apex bank lends short term money to the bank

New Delhi: State-owned Oriental Bank of Commerce (OBC) on Tuesday said customers can now avail home and vehicle loans at repo-linked interest rates starting from 8.35 percent and 8.70 percent, respectively.

OBC has launched a new variant of home loan and vehicle loan products linked to the Reserve Bank of India's repo rate, the bank said in a release.

Oriental Bank of Commerce offers home vehicle loans at new repolinked rates of 835875

Representational image. Courtesy: News18

"Customers will have the option to select between MCLR linked rate, which is indexed to the bank's cost of funds or a repo rate linked to the external benchmark.

"With the new variant, home loans and vehicle loans will also be available at repo rate linked interest rate starting at 8.35 percent and 8.70 percent, respectively, thus passing on the further benefit of 20 basis points and 25 basis points respectively to the current MCLR rated pricing," OBC said.

The new home loan and vehicle loan products will directly link interest rate to an external benchmark, which in this case is the repo rate and thereby build a direct link to ensure the fair and transparent transmission of the monetary policy rate immediately to the customers, the Gurugram-headquartered lender said.

The decision comes in the backdrop of Reserve Bank Governor Shaktikanta Das asking banks on Monday to link their loan as well as deposit rates to the repo, the rate at which the apex bank lends short term money to the banks.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

World has made little progress to prepare for future pandemics says global health monitor
science

World has made little progress to prepare for future pandemics says global health monitor

The Global Preparedness Monitoring Board is again calling for broad global cooperation and significant, long-term financing of pandemic preparedness and prevention.

Rajan, Acharya may be off mark: PSU banks need strategy and focus to survive, not privatisation as remedy
India

Rajan, Acharya may be off mark: PSU banks need strategy and focus to survive, not privatisation as remedy

The PSU banks' problem is often linked to India's burgeoning fiscal deficit that needs control because pumping taxpayer money into state-run banks is fraught with risks.

Google Pay introduces a NFC-based tap and pay feature for Android users in India
News & Analysis

Google Pay introduces a NFC-based tap and pay feature for Android users in India

Google has partnered with Visa and other banking partners to bring this feature. It is available for Axis and SBI Cardholders.