Floating rate loans are re-set as when the interest rates fall or rise, but fixed rate loans are reset in 9-12 months.
India's industrial production growth slowed to 4.3 per cent in July, dragged mainly by manufacturing sector's poor show.
A move aimed at ensuring faster transmission of policy rate cuts to borrowers.
Home loans up to Rs 75 lakh with a tenure of up to 35 years will be offered at interest rate of 8.30 per cent per annum onwards.
Banking and non-banking financial companies (NBFCs) are still grappling with very large bad loans on their balance sheets.
The bank has already linked the housing loan interest rate with repo rate.
RBI has lowered the repo rate by 1.1 percentage points in 2019, the banks are yet to pass on the entire benefit to borrowers.
A dozen public sector banks, including State Bank of India, have voluntarily linked their interest rates to repo.
Governor rules out asset quality review of NBFCs.
SBI was to first one to link loans and deposits to the repo rate from May and home loans from July, six other banks followed.