SBI withdrew Repo rates linked home loan scheme

The publice setcor bank State Bank of India has recently announced that it has withdrawn the repo rate linked with the home loan scheme. The largest bank of country has cleared this through their twitter handle while replying to a query.

SBI was the first one in all banks to introduce the home loan scheme which was linked to repo rate of Reserve bank of India. The scheme was launched in the month of July.

A Twitter user @yashuk22 asked about converting the existing home loan to the repo rate linked product on the twitter handle and also the charges and fees which would be required in the process. SBI responded: “Kindly note that RLLR based home loan scheme have been withdrawn. You can get the home loan migrated to MCLR based home loan.” RLLR refers to repo-linked lending rate.

The withdrawal of repo rate linked home loan scheme from SBI came before the RBI’s mandate to banks to link new floating rate home, auto loans with external benchmarks, from October 1.

A SBI representative cleared on it that if a person has already taken this scheme then he would be eligible to continue under the scheme.

Earlier Rajnish Kumar who is chairman of the State bank of india, said that bank will ask for the clarifications from the RBI that is the loan can be offered at fixed rates and can later be changed to floating rates or not.