Home loan borrowers may still have a reason to joy

Q: Even as RBI has not cut rates, but would soon announce a new formula on base rate- the floor rate at which they lend their best rated borrower.

Roshni Pawal, Mumbai

2nd December 2015

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And soon they are ready to announce a new formula on base rate- the floor rate at which they lend their best rated borrower. This revised formula is aimed to speed up transfer of policy rates to end user. Thus revision in policy rate would reflect in the lending rates of bank faster the case is right now.

Amitabh, Noida

2nd December 2015

Comment

Even bankers also feel that there is a need for a dependable benchmark for banks to peg their lending rates for transmission to take place smoothly. They do not have a good benchmark except the overnight interbank lending rate.

shaina,

2nd December 2015

Currently, country's largest bank, State Bank of India, has pegged its base rate at 9.30% while its home loan is pegged at 9.50%.

Kaushik Bardia,

2nd December 2015

Yes, the RBI maintained a status-quo by not lowering the policy rate, but it has sent a strong message to banks to lower rates. The RBI has told that the policy stance is 'accommodative' which means that there is more room for rate cut in coming months.

Kaushik Bardia,

2nd December 2015

Comment

It is true and we have seen that Banks have reduced the deposits rates and as the effect of this rate cut is seen on the bank's balance sheet, banks will pass on further benefit to borrowers in terms of rate cut.

shaina,

2nd December 2015