Mumbai: Syndicate Bank’s Alco met today and made several changes to its offerings on loans and deposit products.
The bank has decided to lower, effective from 12/08/2019, its MCLR rates by 25 basis points across all tenors. With this, during the current financial year, cumulatively the bank has reduced its MCLR in different tenors up to 50 basis points.
Simultaneously, the bank has decided to introduce Repo Linked Deposit Rate (RLDR) and Repo Linked Lending Rate (RLLR) in a wide range of its products.
Housing Loans, Vehicle Loans and Consumer loans will now be offered at a RLLR basis. With the change, the Housing Loans of the Bank will start from Repo plus 2.90% i.e. 8.30%. Similarly, the Saving Bank deposits over Rs 25 lacs will henceforth be based on RLDR.
The bank expects that this will ensure fair and transparent transmission of policy rates in its products. The bank will continuously work towards offering greater reduction in various products in the coming days based on external market bench marks. The bank has taken several steps to reduce Turn Around Time (TAT) for loan applications to facilitate quicker credit flow especially to Retail, MSME and Corporate Sectors. For this purpose, all loan applications received in any office of the Bank shall bear the unique identifier which will be communicated to the borrower. The status of the loan will be communicated via SMS during every stage of processing.
Bank is also enabling digitalization to enable borrowers to track their applications in the Bank in the coming days.