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Several banks have moved away from marginal cost of lending rate (MCLR), to repo-linked lending rate (RLLR) products after successive cuts by RBI in last one year. The repo rate is the rate at which the RBI lends money to other banks, hence banks get to borrow money cheaply from the RBI. Fresh borrowers should absolutely go for these repo rate-linked loans since the rate transmission is so transparent. However, for existing borrowers the rate cut should be at least 0.5% lower than the existing loan cost as customers face costs like processing fee and stamp duty while switching.