Is your lender passing on the rate change?
When the RBI changes the repo rate, the benchmark of a repo-linked loan changes. Your rate must then change by the same quantity, at a reset date. Type a rate that you know and your rate at this time. This tool calculates the rate that the benchmark gives you. Your numbers stay in your browser.
The benchmark history of your lender
| Effective date | Benchmark | Source |
|---|
From rate-history.json. Each value is from the website of the lender or of the RBI. Refer to how fast each lender changed its rate.
How the tool calculates the rate
Your rate is the benchmark plus a spread. The spread usually stays the same for all of the loan. The RBI lets the lender change the credit-risk part of the spread only when your credit risk has a large change. Your loan agreement must let the lender make this change. The lender can change the other parts one time in three years (RBI circular on external benchmark lending, 4 Sep 2019).
Thus, the tool adds the change in the benchmark to the rate that you know. The result is the rate that the benchmark gives you at this time.
The same RBI circular tells lenders to reset the rate of these loans a minimum of one time in three months. Thus, a benchmark change must show in your rate in a maximum of three months. The tool shows the last date for the change.
If your rate is higher than the tool shows
- Get a letter or an email from your lender. It must show the benchmark of your loan, your spread and your reset dates.
- If the lender changed your spread, get the cause and the clause in your loan agreement.
- If the reply does not agree with your loan agreement, send a complaint to the grievance officer of the lender.
- If the lender does not reply in 30 days, or if you do not accept the reply, send a complaint to the RBI Ombudsman. Use cms.rbi.org.in.
Limits of this tool
- It is for floating-rate loans that follow an external benchmark (EBLR, RLLR, repo rate). It is not for MCLR or base-rate loans.
- It cannot know a spread change that your loan agreement lets the lender make.
- For some lenders, we do not have a full benchmark history. For a date before the first value in the table, the tool cannot calculate the rate.