Indian Overseas Bank on Tuesday said it will offer consumer loans linked with RBI's repo rate from October.
The bank has decided to offer Repo Linked Lending Rate (RLLR) for new loans sanctioned under retail segment --housing, vehicle, education and clean loans-- and MSMEs from October 1, it said in a release.
The Reserve Bank through a notification in early September had advised banks to link all new floating rate for personal or retail loans and MSMEs to one of the external benchmarks.
These benchmarks are repo rate, 3/6 months treasury bills yields or any other benchmark published by Financial Benchmarks Pvt Ltd.
"Out of the above three benchmarks, IOB has now decided to link interest rates with repo rate for these segment loans and the details of rates will be published with effect from October 1, 2019," said the Chennai-based lender.
Henceforth, all the new loans under these categories will be offered with RLLR only, it added.
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