Indian Bank adopts repo rate as external benchmark for asset products

Under the new regime, home loans can be had at 8.2% a year, while four-wheeler loans will carry 8.85%, which the lender says is the lowest in the market

Indian Bank said today that it, in line with RBI's recommendations, has adopted the repo rate as an external benchmark for asset products.

The Bank is rolling out home-loan and vehicle-loan products linked to Repo Based Lending Rate (RBLR) with effect from September 4.

The present RBLR is 8.20 per cent per annum. Home loans can be availed at 8.20 per cent per annum onwards. For vehicle loan (four wheelers) under Repo Rate regime will carry 8.85 per cent per annum, which is the lowest in the market, says the Bank.

For Home Loan, the maximum repayment period is 30 years and there is no upper ceiling. Switch over from existing base rate/MCLR to RBLR is not permitted, both for home and vehicle loans. For Vehicle Loan, for the purchase of four wheeler, the ceiling is Rs 2 crore. The maximum repayment period is 84 months. Take over from other Banks or financial institutions is not permitted, said the Bank.