Allahabad Bank prices housing loans and SB deposits with External Benchmark Linked Rates

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Capital Market
Last Updated : Aug 28 2019 | 10:50 AM IST
Allahabad Bank announced that in order to ensure quicker transmission of policy rate adjustments, the Bank has decided to price its Housing Loans (upto Rs 75.00 Lakh and MUDRA Loans) sanctioned with effect from 01 September 2019 with reference to the External Benchmark Linked Rates (EBLR). However, the borrowers shall have the option for either Marginal Cost of Funds Based Lending Rates (MCLR) linked loan or EBLR linked loan at mutually acceptable terms.

Further, all the Saving Bank Deposits of Rs 40.00 Lakh and above will be linked with External Benchmark with effect from 01 October 2019.

The Rate of Interest based on External Benchmark on aforesaid loans will comprise RBI Repo Rate, Average of last ten years Net Interest Margin of the Bank rounded off to the nearest 05 bps and Credit Risk Premium based on Internal Credit Risk Rating.

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First Published: Aug 28 2019 | 10:27 AM IST

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