RLLR (Repo-Linked Lending Rate)
An RLLR (also EBLR) ties your floating rate to the RBI repo rate plus a spread. Since October 2019 most new floating retail loans use such an external benchmark, so rate changes pass through faster and more transparently than under MCLR.
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The Repo-Linked Lending Rate (RLLR), also described as an External Benchmark Lending Rate (EBLR), pegs your floating interest rate directly to the RBI’s repo rate plus a fixed spread set by the lender. Your effective rate is simply the repo rate plus that spread, so the moving part is fully transparent.
Since October 2019, the RBI has required most new floating-rate retail loans — home, auto and many personal loans — to be linked to such an external benchmark. The big advantage over MCLR is speed and clarity: when the repo rate changes, the revision flows into your rate within the next reset (commonly each quarter), rather than waiting on a bank’s internal calculations. That cuts both ways, of course — hikes reach you just as quickly as cuts.
When comparing lenders, look closely at the spread over the repo rate, since that is what differs between banks and stays with you for the life of the loan. Our piece on MCLR vs repo-linked home loans explains how to read these quotes.
Worked example. The same 0.5% rate difference on a ₹50,00,000 / 20-year loan is worth about ₹3,82,832 in total interest — faster repo transmission means you feel a cut sooner.
Figures are estimates; confirm your spread and reset frequency with your lender. Use the home loan calculator and see how the interest rate affects your EMI.