Bank of India introduces repo-based interest rate for select loan products

Bank of India(BoI) on Saturday said it has decided to introduce repo-based interest rate for select loan products. Corporation Bank also announced launch of home loans linked with external benchmark.

Initially, Bank of India will link housing, vehicle and personal loans to an interest rate based on Reserve Bank's repo rate, the bank said in a statement.

"These repo based interest rate products would be available to the customers, effective from September 1, and would be formally launched at bank's 114th Foundation Day on September 7," BoI said.

This measure will facilitate better transmission of policy rate changes and benefit the customers, it added.

Corporation Bank on Saturday said it has introduced an external benchmark-linked home loan product, according to a BSE filing.

"RBI's repo rate has been selected as the external benchmark for this purpose. Now, with this new variant, customers will have the option to select between MCLR linked rate, which is indexed to the bank's cost of funds or RLLR rate (Repo Linked Lending Rate), which is linked to RBI's Repo rate," it said. The RLLR has been fixed at 8.20 per cent.

"With the introduction of RLLR rate, the customers can now avail home loans starting at 8.50 per cent," it said.