Oriental Bank of Commence has launched new variant of Home Loan and Vehicle Loan products linked to Reserve Bank of India’s repo rate.
The new Home Loan and Vehicle Loan product will directly link interest rate to an external benchmark, which in this case is the Repo Rate and thereby build a direct link to ensure fair and transparent transmission of the monetary policy rate immediately to the customers.
Customers will have the option to select between MCLR linked rate, which is indexed to the bank’s cost of funds or a Repo Rate linked to the external benchmark. With the new variant, Home Loans and Vehicle Loans will also be available at repo rate linked interest rate starting 8.35% and 8.70% respectively, thus passing on further benefit of 20 basis points and 25 basis points respectively to the current MCLR rated pricing.
