Mumbai: Borrowers could be paying less on their mortgages as banks shift to a new system of linking such loans this week to benchmarks prescribed by the central bank. That may result in lowering the cost of funding by as much as 30 basis points in some cases, experts said. Those in the higher Risk Grade (RG) 4-6 will be levied a further 10 basis points. The repo rate, at which banks borrow from the RBI , is at the lowest since February 2010 at 5.4%. A 100 basis point climb could pinch the pocket by as much as Rs 4,500 a month.

Source: Economic Times September 30, 2019 02:24 UTC