RLLR definition
RLLR means Repo Linked Lending Rate. The term “Repo Rate", means the rate at which the Banks borrow funds from Reserve Bank of India and the Bank has adopted the REPO rate as the external benchmark to arrive at the effective rate of interest. RBI Repo Rate prevailing as on the day, immediately preceding the day on which disbursement is made shall be applicable and the Bank’s operating cost as on the date of disbursement shall be applicable. The Repo Rate will be reset on the next day after the Repo rate is revised by the Reserve Bank of India (RBI) and accordingly the effective rate of interest may vary. Further the effective rate of interest may also vary due to change in other components of ROI, i.e., Operating Cost and/or Spread. Operating cost may change as per Banks policy in tune with regulatory guidelines and spread may undergo change when borrower's credit assessment undergoes substantial change. The Repo linked lending rate will change upwards or downwards as the case may be, in line with movement of Repo Rate fixed by RBI, on the Reset date mentioned above.