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Interest Rates on Loans*


Interest Rates on Loan Against Property

For Term Loans
TypeRepo Rate + SpreadEffective Rate of Interest
Floating Rate- PSL CategoryRepo Rate + 4.50% to Repo Rate + 4.90%10.50% - 10.90% p.a.
Floating Rate- Non PSL CategoryRepo Rate + 4.50% to Repo Rate + 4.95%10.50% - 10.95% p.a.
For Overdraft Loans
TypeRepo Rate + SpreadEffective Rate of Interest
Floating Rate- PSL CategoryRepo Rate + 4.50% to Repo Rate + 4.90%10.50% - 10.90% p.a.
Floating Rate- Non PSL CategoryRepo Rate + 4.50% to Repo Rate + 4.95%10.50% - 10.95% p.a.

Floating rate Loans linked to the External benchmark rate are calculated as follows:

  • The Benchmark rate is the RBI Repo Rate (currently 6%)
  • The Bank charges an additional rate over the Benchmark Rate, called spread, to arrive at the final lending rate
  • The lending rate for existing customers is reset once in three months or as decided by the Bank, whichever is earlier.
  • The bank reviews the benchmark rate and the applicable spread at the beginning of every month. These rates are applicable till the next review