the countrys largest lender state bank of india sbi has withdrawn the reporate linked home loan scheme that it launched in july the bank stated this on its official twitter handle where it was responding to a customers query on migrating to the reporate linked home loan schemekindly note that rllr based home loan scheme have been withdrawn you can get the home loan migrated to mclr based home loan stated the tweet yashuk22 kindly note that rllr based home loan scheme have been withdrawn you can get the home loan migrated to mclr based home loan state bank of india theofficialsbi 1568725164000 further the bank removed details of the reporate linked loan scheme from its website about a week ago as of now the bank is lending only on marginal costbased lending rate mclret online has mailed the bank and is awaiting their response you might also likesbi to move rbi to offer fixedfloating rate homeloans chairman rajnish kumarwill sbi launch a new schemeit is expected that the bank will introduce a new loan scheme with interest rate linked to external benchmark by october 1 2019 the reserve bank of india has mandated all banks to offer loans with interest rates linked to externalbenchmarks from october 1 2019 these are 1 rbis repo rate2 government of india 3month treasury bill yield3 government of india 6month treasury bill yield4 any other benchmark market interest rate published by the financial benchmarks indiaprivate ltdtherefore in order to comply with the rbi diktat sbi is bound to launch a new loan scheme on these lines additionally it may be mentioned that it was the first psu bank to launch a loan scheme with interest rate linked to an external benchmark which was the reporatesbis old repo rate linked home loan schemeit may be recalled that sbi was the first bank to launch a reporate linked loan scheme back in july the bank had introduced repolinked lending rate for home loans from july only for new customers the economic times had also reported that the bank was mulling offering reporate linked home loans for existing borrowers as wellsbis repolinked lending rate rllr had a 225 markup over the repo rate which was 540 at present so rllr was 765 then there was a spread of 40 basis points and 55 bps above the rllr so new borrowers could avail themselves of home loans from sbi at 805 or 820 per annum said another economic times news report these rates were effective from september 1 2019 one basis point is equal to onehundredth of one percent after sbi many other publicsector banks have launched reporate linked loan products these include bank of baroda syndicate bank have followed suit while other psbs like union bank of india canara bank central bank of india and allahabad bank have announced plans to launch such productsclarifications sought by sbisbis chairman rajnish kumar has said that the bank is seeking clarifications from rbi on whether it can offer longterm home