SBI to use repo rate as benchmark to price MSME, retail loans from Oct 1

Also, link pricing credit to Medium units to the repo rate

State Bank of India (SBI) will use repo rate as the external benchmark to price all new floating rate loans for Micro and small and medium enterprises (MSMEs), housing and retail loans and medium-size enterprises from October 1, 2019.

This decision follows the Reserve Bank of India notification to link all new floating rate, personal or retail loans (housing, auto, etc.) and floating rate loans to Micro and Small Enterprises, to external benchmarks. 

Country’s largest lender said it will voluntarily extend benchmark-based lending to medium enterprises also to boost lending to the MSME sector as a whole.

SBI had introduced