Allahabad Bank, a premier Nationalized Bank, with the approval of the Board of Directors, has launched Retail loans and loans to Micro & Small Enterprise linked with External Benchmark Rates published by FBIL. This is in line with the RBI guidelines dated 04th September 2019. The Retail Products on offer are viz., Housing, Car, Education, Personal, Consumer Loans etc. and Micro & Small Enterprise Loans viz., Trading, Manufacturing, MUDRA, Commercial Vehicle, Rent Discounting, Property Loans etc. Presently the Bank has identified RBI's Repo Rate and 3 Month MIBOR as the Benchmark Rates.
With the introduction of these products, bank is passing on the benefit of lower interest rate to the customers in the range of 05 bps to 150 bps from the existing rate of interest under MCLR.
In addition to the above, Bank is also extending concession of 05 to 10 bps to our Women beneficiaries. An additional concession of 05 bps per annum with a maximum cap of 25 bps during the life cycle of the loan will be extended to the borrowers who are regular in their repayment, year on year.
All these products are available for the general public w.e.f. 01st October 2019.
The above products are available to new customers. All the existing customers will also be offered an option to switch over to the new products.
In order to manage the interest rate risk, some Liability products viz., Savings Accounts (Rs.40 lacs & above), Long tenure Fixed Deposit, Bulk Deposits and Flexi Fix deposits have also been linked with External Benchmark Rate, i.e., RBI's REPO Rate.