State Bank of India (SBI) will levy interest rate repo rate on small and medium scale industry loans, housing loans, auto loans and other retail loans from October 1. The bank announced on Monday that it would consider the external standard repo rate for all types of variable interest rate loans.

On September 4, the Reserve Bank of India (RBI) had asked all banks to link their external interest rates to loans with variable interest rates.

“We have decided to adopt an external standard repo rate of interest rate for all variable interest rate loans,” SBI said in a press release. These interest rates on small and industry loans, housing loans and other retail loans will be effective from October 1, 2019.

The Reserve Bank had given banks the option to choose one of the repo rates, quarterly or half yearly fiscal bills or any market interest rate standard issued by the Financial Benchmark India Private Limited.