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.

Allahabad Bank Launched MSME Loans Offering with External Benchmark Rates

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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.

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Wordpress (2)
  • comment-avatar
    Dipa Sarkar 9 months

    I need a business loan forexixting business

  • comment-avatar
    Dipak Sarkar 9 months

    I need business loan immediately for existing business

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