Back
Home » Business
  •  
    Filmi Bollywood
    • Star Screen Awards 2018 Red Carpet: Salman Khan Makes A Stylish Appearance; Looks Dapper
    • Alia Bhatt, Anushka Sharma & Deepika Padukone Wear Similar Outfits: Snapped Together At Event
    • Shah Rukh Khan’s Tweet To Wife Gauri Khan Will Make You Fall In Love Him All Over Again!
    • RIP! Akshaye Khanna's Mother Geetanjali Khanna Passes Away At The Age Of 70!
    • Sohail Khan Hosts Birthday Bash For Son Nirvan; Celebs Arbaaz, Malaika, Sonakshi & Others Attend
    • Katrina Kaif Says She Avoids Confrontation: Relates To Her Character From Zero
    • Pictures! Janhvi, Sara, Kriti, Karan Attend Dinesh Vijan’s Classy Cocktail Party
    • Karan Johar Is Spotted Hanging Out With Friends At Popular Juhu Club
    • Malaika Arora Seen In An Effortless Chic Look Today: Spotted At Her Fashion Store
    • Priyanka Chopra- Nick Jonas To Go To Switzerland For Their Honeymoon? Read Details Here!
    • Ranveer, Deepika, Rajkummar, Kartik Set The Dance Floor On Fire At Dinesh Vijan's Wedding Bash!
    • ‘Taimur’ Named Movie? Madhur Bhandarkar Apparently Registers 'Taimur' As Movie Title!
    • Newbies Zaheer & Pranutan Talk About Notebook: It Is Beautiful, Colourful And Happy Says Zaheer
    • Sara Ali Khan Talks About Mum Amrita Singh’s Reaction To Kedarnath!
    • ‘Fraud Saiyan’ Releases First Song: Remixed Version Of Hit Urmila Track ‘Chamma Chamma’
    • First Pics From Isha- Anand's Wedding Reception: Kartik Aaryan, Dia Mirza & Others Arrive!
    • First Pics From Isha- Anand's Wedding Reception: Ekta Kapoor, Sunny Deol & Others Arrive!
    • Acclaimed Actors Kalki Koechlin, Jaya Bachchan Attend 2nd Indo-French Professional Meetings
    • Ranveer Singh After Marrying Deepika Padukone: I Highly Recommend People To Get Married, It's Good!
    • Sonam Kapoor Lands Dulquer Salmaan In Trouble With Her 'Weirdo' Driving Video!
Home, Auto Loan Interest Rate Calculation Will Change From April
Good Returns | 6th Dec, 2018 10:57 AM

The Reserve Bank of India on Wednesday asked lenders to link new floating rate loans to external benchmarks in order to improve transparency. Personal or retail loans, as well as small business loans based on floating rate, will be linked to an external benchmark starting 1 April 2019. The final guidelines regarding this will be issued by the central bank by the end of December.

Banks will be given the discretion to decide on the spread when the loan is issued but that should remain constant throughout the period of the loan unless there is a change in the borrower's credit score.

Lenders can choose from RBI's repo rate, the 91-day T-bill yield, the 182-day T-bill yield and any market interest rate produced by the FBIL, as their external benchmark.

The RBI has earlier made linking base rate to the marginal cost of funds-based lending rate mandatory. Linking interest rates to external benchmarks make them transparent for borrowers and help reflect the global rate environment better. It will, however, be challenging for interest-rate management by banks.

The new loan pricing mechanism is based on the recommendations of an internal study group chaired by Janak Raj at the RBI in October 2017. It comes three years after MCLR (marginal cost lending rates) system was introduced in 2016, which replaced the 'base rate.' The MCLR was introduced to reflect the changes in policy rates by the central bank. Earlier, banks were slow to make the adjustment.

   
 
Health and Life
  • 20 Lesser Known Health Benefits Of Basil Leaves, Nutrition & Recipes
  • 20 Wonderful Benefits Of Red Spinach, Nutrition & Recipes
  • 17 Effective Benefits Of Arrowroot For Health, Hair And Skin
    • 20 Amazing Health Benefits Of Watercress, Nutrition & Recipe
    • Cyclic Vomiting Syndrome: Symptoms, Causes & Treatment
    • Pigeon Peas: 10 Health Benefits, Nutritional Value & Recipe
      • 28 Amazing & Effective Home Remedies For Goitre
      • Black-eyed Peas: 12 Health Benefits, Nutritional Value & Recipes
      • Breadfruit: 13 Potent Health Benefits, Nutritional Facts And How To Consume
        • Can Excess Iodine Cause Hypothyroidism? Recommended Usage, Risk Factors & Warnings
        • 12 Benefits Of Bengal Gram (Black Chana Or Garbanzo Beans) For Health
        • 17 Incredible Health Benefits Of Rambutan, Uses, Nutritional Facts & Recipes
          • Liposarcoma: Types, Symptoms, Causes, Diagnosis & Treatment
          • 9 Lesser Known Benefits Of Safflower Oil; Does It Really Aid In Weight Loss?
          • What Is Kefir? Its Types, Benefits And How To Make It
            • Low Urine Output (Oliguria) – Causes, Symptoms, Diagnosis & Long-term Outlook
            • 16 Healthiest Things To Add To Your Daily Tea
            • Ackee: Benefits, Nutritional Value & Healthy Recipes