Central Bank to offer repo-linked interest rate on loans

State-run Central Bank of India on Sunday said it will be offering repo-linked interest rate (RLIR) on home and vehicle loan products with immediate effect.

The lender said the existing borrowers will also be given an option to switch over to the new repo-linked interest rate at a fee, a statement said.

It will continue to offer home loan and vehicle loan products linked to MCLR.

Separately, the bank has also signed an agreement with ECL Finance, a subsidiary of Edelweiss Financial Services, for co-origination of loans to micro, small and medium enterprise (MSME) customers.

This is the first co-origination partnership of the banks with an NBFC.

"This partnership shall enable us to collaborate and harness technology, bring in the best practices in credit underwriting finer pricing and render a far superior experience in terms of turnaround time to customers," the bank's managing director and CEO Pallav Mohapatra said.

The partnership aims to facilitate speedy disbursal of credit across products, including machinery and business loans, Edelweiss Group said in a statement.

Under the agreement, MSMEs will be offered blended lower rate of interest, translating into a lower cost of funds, helping them deploy capital more effectively in their business, it said.