RLLR

Repo Linked Lending Rate is the external benchmark lending rate that most Indian banks adopted after RBI made it mandatory for new retail floating-rate loans from 1 October 2019. The RLLR is pegged directly to the RBI repo rate plus a bank-specific spread, and must reset at least once every three months. The point of the rule was to fix the slow and partial rate transmission that had plagued the MCLR era.

The quoted rate on your loan is typically "Repo + bank spread + customer-specific premium". With the repo rate at 6.50% and a bank spread of 2.25%, the base RLLR is 8.75%; a prime borrower might get 8.75% + 0.00% while a weaker profile pays 8.75% + 0.40%. When RBI cuts the repo by 25 bps, your rate drops 25 bps at the next reset — usually within three months — versus the 6–12 month lag on MCLR loans.

The flip side: rate hikes also pass through faster, and many banks quietly extend tenure rather than raising EMI when rates rise. Borrowers should check their reset date and whether the bank is adjusting EMI or tenure.

Run your outstanding balance through our home loan EMI calculator at both your current rate and the latest RLLR to quantify your actual exposure to the next repo move.