Also called: RLLR (repo-linked lending rate), External benchmark rate
External benchmark lending rate: a floating loan rate linked to an outside benchmark, usually the RBI repo rate, plus a spread. Banks have had to use it for new floating-rate retail loans since 1 October 2019.
How it works and what to check
Your rate = benchmark + spread. The benchmark moves when the RBI changes the repo rate, and the bank must reset the rate at least once every three months. The spread stays the same unless your credit risk changes.
Older loans on MCLR or base rate can be moved to EBLR, sometimes for a fee. Compare the spread offered to new borrowers with yours.