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Allahabad Bank introduces external benchmark linked rates

28 Aug 2019 Evaluate

In a bid to ensure quicker transmission of policy rate adjustments, Allahabad Bank has decided to price its housing loans, upto Rs 75 lakh and MUDRA Loans sanctioned with effect from September 01, 2019 with reference to the External Benchmark Linked Rates (EBLR).

However, the borrowers shall have the option for either Marginal Cost of Funds Based Lending Rates (MCLR) linked loan or EBLR linked loan at mutually acceptable terms. Further, all the Saving Bank Deposits of Rs 40 lakh and above will be linked with External Benchmark with effect from October 01, 2019.

The Rate of Interest based on External Benchmark on aforesaid loans will comprise RBI Repo Rate, Average of last ten years Net Interest Margin of the Bank rounded off to the nearest 05 bps and Credit Risk Premium based on Internal Credit Risk Rating.

Allahabad Bank is a nationalised bank with its headquarters in Kolkata. It is the oldest joint stock bank in India.

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