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Punjab & Sind Bank

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qnffi 97 / Circutatory Letters : 44212019 frqiq' p3166 : 23.12.20i9

ftrnqotE-d€gr code No. of the Department : H-9021
qftq--, frt gg Tiqf Number of pages of Circutar
:1
TfrffiT qrft(lfq/Iiliffi STqteIq /All Branches / Controlling OfficeslOepartnrentsl
Subject: Review of Switch over from MCLRI/Base Rate/BPLR to External Benchmark Lending
Rate.

ALCO in its meeting dated 21.12.2019 reviewed the mechanism for switch over of interest rate from
MCLR/Base Rate/BPLR to EBLR as under:
i. The final interest rate to be charged to the Borrower opting for switchover from MCLR/Base
Rate/BPLR to EBLR, shall be same as the rate charged for a new loan of the same category,
type, tenor and amount, at the time of origination of the loan (Under EBLR). lf there is any
difference, the same shall be added to the premium to arrive at the rate.
Example: (l) lf housing loan of a customer, having CIBIL score of 800 and existing applicable
ROI @ 8.50% p.a. (linked to MCLR), submits request for switchover to EBLR, then post
switchover applicable ROI under EBLR will be @ 8.30% p.a. i,e same as ROI presently
charged to housing loan borrower having CIBIL score of 800 as per Table "A" Page No. 1,
RMD Circular No. 432daled 01.10.2019.
ii. Borrower shall submit request letter for switchover at mutually acceptable terms. Once opted
for EBLR, the borrower shall have no option for reversion to MCLR / Base Rate / BPLR till
maturity of the loan.
ilt. Once shifted to External Benchmark Lending Rate (EBLR), allthe provisions of EBLR will be
applicable. Accordingly, new loan documents applicable for EBLR to be executed by the
Borrower.

Delegation for permitting switchover shall be vested with the respective sanctioning authority.
Any concession in interest rate will be reviewed at the time of switchover and shall be extended
as per existing guidelines circulated by the respective Departments.
vi. Switchover charges on OD/CC and Term Loans are as follows
OD/CC Term Loan
a. 1.00% of sanctioned limit, whichever is Fully Disbursed-1.007o of outstanding amount
higher for Working Capital component. Maximum Rs15000/-
b. Maximum -Rs15000/- Partially Disbursed Account - 1.00 o/o of
c. No switchover fee on Switchover during (Principal Outstanding + Undisbursed Amount)
renewal

All the branches/controlling offices are advised to take note and ensure strict compliance of above
guidelines.

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