United Bank of India, Allahabad Bank to offer repo-linked rates; will pass on benefit of RBI's rate cut to customers

Two city-based banks, United Bank of India (UBI) and Allahabad Bank, have decided to offer select loan products linked to repo rates to pass on the benefit of the RBI's rate cut to their customers, bank officials said on Friday

Press Trust of India August 30, 2019 14:44:46 IST
United Bank of India, Allahabad Bank to offer repo-linked rates; will pass on benefit of RBI's rate cut to customers
  • Bankers had been facing flak from the borrowers for not being able to transmit the benefits of repo rate (at which Reserve Bank of India lends to banks) cuts by RBI

  • Earlier this month, RBI had slashed the repo rate for the fourth time in a row by an unprecedented 35 basis points to cushion the rising headwinds to growth amidst softer inflation

  • United Bank of India would offer housing and car loan products with repo linked lending rate (RLLR)

Kolkata: Two city-based banks, United Bank of India (UBI) and Allahabad Bank, have decided to offer select loan products linked to repo rates to pass on the benefit of the RBI's rate cut to their customers, bank officials said on Friday.

UBI sources said the bank would offer housing and car loan products with repo linked lending rate (RLLR).

For housing loans, the new RLLR will vary from 8.15 percent to 8.30 percent based on loan-to-value (LTV) ratio, and 8.70 percent to 8.85 percent for car loan borrowers.

United Bank of India Allahabad Bank to offer repolinked rates will pass on benefit of RBIs rate cut to customers

Representational image. Reuters.

The bank also said that it will continue to offer home and car loan products linked to the marginal cost of lending rate (MCLR) giving customers the option to choose.

This move would lead to lower EMI for the customers, the bank official said.

Allahabad Bank would link housing loans up to Rs 75 lakh to RLLR as well as Mudra loans under 'Sishu', 'Kishore' and 'Tarun' categories.

Savings bank deposits of Rs 40 lakh and more would also be linked to RLLR, the bank said.

However, the lender would also continue to offer loans linked to MCLR.

Bankers had been facing flak from the borrowers for not being able to transmit the benefits of repo rate (at which Reserve Bank of India lends to banks) cuts by RBI.

Earlier this month, RBI had slashed the repo rate for the fourth time in a row by an unprecedented 35 basis points to cushion the rising headwinds to growth amidst softer inflation.

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.

PNB SO Recruitment 2020: Punjab National Bank releases notification for 535 posts; apply by 29 Sept
India

PNB SO Recruitment 2020: Punjab National Bank releases notification for 535 posts; apply by 29 Sept

The PNB SO recruitment exam will be held in October or November. The schedule for the exam will be released soon at pnbindia.in

India drops one position in World Bank's Human Capital Index, ranked 116  among 174 nations
India

India drops one position in World Bank's Human Capital Index, ranked 116 among 174 nations

However, India's score in the 2020 Human Capital Index update, which ranked countries based on health and education data till March, was still better than its performance in 2018