State Bank of India (SBI) has decided to adopt repo rate as the external benchmark for all floating rate loans for MSME, housing and retail loans.
This dispensation will come into effect from October 1, 2019.
SBI has now voluntarily extended the external benchmark based lending to medium enterprises also, to boost lending to the MSME sector as a whole.
Earlier, the SBI had introduced floating rate home loans from July 1,2019. A few modifications have now been made effective October 1, 2019 to comply with the latest regulatory guidelines.