India Today - - REPO RATES -

From Oc­to­ber 1, float­ing rate loans will be linked to ex­ter­nal bench­marks

This is ex­pected to re­duce in­ter­est rates as banks switch to the new sys­tem

Ex­ist­ing bor­row­ers should eval­u­ate the cost be­fore shift­ing de­pend­ing on the ten­ure and the cost sav­ings

In­ter­est rates will be re­viewed at least once ev­ery three months

There will be more fre­quent changes in lend­ing rates

Link­ing of lend­ing rates to ex­ter­nal bench­marks will make com­par­isons eas­ier and will also in­crease trans­parency

Ex­ist­ing bor­row­ers can shift to the new sys­tem af­ter pay­ing fees

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