Subscribe

0

  • Sign in with Email

By clicking the button, I accept the Terms of Use of the service and its Privacy Policy, as well as consent to the processing of personal data.

Don’t have an account? Signup

  • Bookmarks
  • My Profile
  • Log Out
  • NEWS
  • POLICIES
  • MSME OPPORTUNITIES
  • BANKING & FINANCE
  • TECHNOLOGY FOR SMES
  • SECTORS
  • GLOBAL
  • Investment
  • LEGAL
  • KNOWLEDGE QUEST
  • Future Ready Forum 2025
  • Ek Nayi Udaan
  • Future Ready Summit 2024
  • ADVERTISE WITH US
ad_close_btn
  • News
  • Policies
  • Banking & Finance
  • MSME Opportunities
  • Web Stories
  • InFocus
  • Technology For SMEs
  • Sectors
  • Global
  • Fashion

Powered by :

You have successfully subscribed the newsletter.
Banking & Finance News

Allahabad Bank Launched MSME Loans Offering with External Benchmark Rates

India's flagship public sector bank, Allahabad Bank launched Retail loans and loans to Micro & Small Enterprise linked with External Benchmark Rates published by FBIL. The board of directors of Allahabad have given their approval for this scheme which is aimed to uplift the level of MSME banking in the country.

author-image
SMEStreet Desk
21 Sep 2019 13:21 IST

Follow Us

New Update
Allahabad Bank, Usha Ananthasubramanian, IBA

India's flagship public sector bank, Allahabad Bank launched Retail loans and loans to Micro & Small Enterprise linked with External Benchmark Rates published by FBIL. The board of directors of Allahabad have given their approval for this scheme which is aimed to uplift the level of MSME banking in the country.

This is in line with the RBI guidelines issued on September 4, 2019.  The Retail Products on which the loans will be given include 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, the Bank is also extending concession of 05 to 10 bps to  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.

Allahabad Bank MSME Loans External Benchmark Rates
Subscribe to our Newsletter! Be the first to get exclusive offers and the latest news
logo

Related Articles
Read the Next Article
Latest Stories
Subscribe to our Newsletter! Be the first to get exclusive offers and the latest news

Latest Stories
Latest Stories
    Powered by


    Subscribe to our Newsletter!




    Powered by
    Select Language
    English

    Share this article

    If you liked this article share it with your friends.
    they will thank you later

    Facebook
    Twitter
    Whatsapp

    Copied!