From April, home loans to be decided by markets | BY : SWAGAR |

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From April, home loans to be decided by markets


SWAGAR | TNN|Updated: Dec 6, 2018, 0

TNNImage used for representative purpose

HIGHLIGHTS

RBI said from April 2019, it will be mandatory for banks to link all floating rate loans


Besides improved transparency, an external benchmark is expected to result in improved transmission of rates


MUMBAI: Borrowers can now expect more

fairplay

when it comes to pricing of

home loans

which will now be decided by markets rather than banks.

 

The RBI said on Wednesday that from April 2019, it will be mandatory for banks to link all floating rate loans, which are extended to individuals and small business, to an external benchmark. This benchmark can be the RBI’s repo rate, yield on the 91-day or 181-day treasury bill, or any other yardstick produced by the Financial Benchmarks of India.






















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