FOR BORROWERS

KEY RATES REDUCED

Repo rate

The rate at which banks borrow from RBI has been reduced by 40 basis points from 4.4% to 4.0%

Reverse repo rate

The rate at which RBI borrows from banks -reduced from 3.75% to 3.35% MORATORIUM ON PAYMENT OF LOANS

Moratorium on payment of term loans extended by another 3 months to August 31. (Interest for six months -- from March to Aug -will be treated as a loan to be repaid in this financial year)

Will make loans cheaper and give borrowers a break from monthly loan repayment