Bank of Baroda started offering retail loans linked to external benchmark rates
Pune, October 04, 2019: Bank of Baroda, India’s third largest bank, announced retail loan offers ahead of the festive season. The offer will be applicable across Home Loan, Mortgage Loan, Car Loan, Education Loan, Personal Loan and all other retail loan products by linking all new retail loans automatically to external benchmark rates (REPO). Existing retail loan customers also have an option to link their interest rates on retail loans to external benchmark rates (REPO).
As per the RBI guidelines and mandate dated 4th September 2019, Banks are required to link all new floating rate retail loans to external benchmark by 1st October, 2019. Accordingly, taking lead Bank of Baroda, previously announced the launch of Baroda Repo Linked Lending Rate for Home Loans. Now, all retail loans are linked to REPO instead of MCLR. The REPO linking has led to a discount of 0.05% on the earlier MCLR linked retail loans. The home and car loans are now available from 8.35% & 8.85% respectively. The bank has on-going offers for home / Car / Education loans at waived /minimal processing fees till March 31, 2020.
On the announcement of launch of Retail loans linked to External Benchmark (RBI REPO), Mr. V. K. Sethi, GM- Mortgages and Other Retail Assets, Bank of Baroda said, ” The introduction of external benchmark based (REPO) rates in retail loans this festive season is a gift for the bank`s existing loyal customers and an exciting offer for new customers availing retail loans who will be benefited from lower rates and faster transmission of any change in rates by RBI in REPO rates going forward.”
