Rate Reset Date

Kind attention to customers of

Floating Rate Loans linked with External Benchmark – RBI Policy Repo Rate

Date: 25^th Feb 2022

You would be aware that the interest rates for the loan(s) are determined with the RBI Repo Rate as the external benchmark rate. As per current practice, this interest rate reset basis changes in the external benchmark rates, is on a quarterly frequency basis your loan disbursement date.

We would like to inform you that with effect from 7^thApril 2022, we are standardizing the benchmark rate reset date to the 7th of every calendar quarter, i.e. on 7th January, 7th April, 7th July & 7th October or 7th day   of the subsequent month in which the RBI Policy Repo Rate is changed whichever is earlier

This is only an operational change, effective from 7^thApril 2022.

 

Illustration

Customer with Loan disbursed on 10^th March, 2020

Previous method → Rate Reset would have come into effect after every 3 months from the date of disbursement

New Standardized method → Rate Reset would come into effect on 7th January, 7th April, 7th July & 7th October.

For any further clarification on this, please contact our Branch officer.