Oriental Bank of Commence (OBC) has launched a new variant of home and vehicle loan products linked to the RBI’s repo rate. The new 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, said a release issued by the bank.
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.