Date: 25th 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 7thApril 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 7thApril 2022.
Illustration
Customer with Loan disbursed on 10th 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.
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