change over to base rate sysstem
w.e.f. 01/07/2010
1. At present the effective rate of interest for loan facilities is determined with linkage to the benchmark prime lending rate (sbar) declared by the bank from time to time.
2. In accordance with the mandatory guidelines issued by reserve bank of india with effect from 1 July 2010, the bank has to determine the chargeable effective rate of interest, for the loan facilities, with linkage to the base rate, to be declared by the bank from time to time.
3. Further in accordance with the instructions of RBI the existing borrowers have the option either to continue with the current system of chargeable effective rate of interest till the facilities falls due for renewal or switch over to the base rate system. Even prior to the due date of renewal, in case they are inclined to do so.
4. customers desirous of switching over to base rate system prior to the date of renewal are requested to contact their home branch, where the concerned staff will provide necessary details and answer any queries relating to the base rate system and other issues like effective pricing of your loan under the base rate system.
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