Interest on home, auto, MSE loans to be linked to new benchmarks from April 1
In a bid to ensure greater transparency, the RBI Wednesday proposed that floating interest rates on personal, home, auto and micro and small enterprises (MSEs) loans be linked to external benchmarks like repo rate or treasury yields, from April 1 next year.
The final guidelines to link the interest rate to external benchmarks will be issued by the end of this month, said the RBI's 'Statement on Developmental and Regulatory Policies'. Image: Pixabay