Country’s largest lender State Bank of India (SBI) September 19 said it has withdrawn its repo-rate linked home loan product scheme, according to several reports. In reply to a customer’s query on its official Twitter handle, SBI said it had withdrawn the repo-linked lending rate (RLLR)-based home loan scheme and the customer can opt to get the home loan migrated to Marginal Cost of Funds based Lending Rate (MCLR) products.
The move by SBI comes ahead of the October 1 deadline set by the Reserve Bank of India (RBI) for banks to ensure the linking of their retail loan product rates with external benchmarks.
The Economic Times additionally reported that about a week ago, the bank removed details pertaining to the RLLR based home loan scheme from its website.
SBI was the first to introduce the scheme, earlier in July this year. It is, however, expected that ahead of the RBI’s October 1 mandate, SBI will come up with a new scheme on similar lines to comply with the central bank’s directive.