RLLR

Full form: Repo Linked Lending Rate

Loans & Credit

RLLR is the benchmark for all new floating-rate retail loans (mandated by RBI since October 2019). Directly linked to repo rate -- rate changes pass to borrowers within 90 days.

In detail

Your loan rate = Repo rate + Bank margin + Credit spread. Spread fixed at origination. Banks' RLLR spreads (approximate 2024): SBI 2.65%, HDFC 3%, ICICI 3.5%. At repo 6.5%: SBI RLLR = 9.15%. Your actual rate = RLLR minus credit risk discount.

Formula

Your rate = Repo rate + Bank margin - Credit risk adjustment (based on CIBIL)

Real-life example

🇮🇳 India example

Priya's RLLR loan: repo at 4% = rate 7%. Repo rises to 6.5% = rate 9.5%. On Rs 50L for 20 years: EMI jumped from Rs 38,765 to Rs 46,607 -- Rs 7,842/month extra. Always budget for rate rise scenarios.

Frequently asked questions

How do I find my loan's reset date? ▼

Check your sanction letter or loan statement. Most RLLR loans reset quarterly from disbursement date.