123: Decoding external benchmarking

123: Decoding external benchmarking

Slowdown blues have meant several rate cuts by the Reserve Bank of India (RBI) over the last few months. In fact, the RBI slashed the repo rate by 35 basis points in the last policy earlier this month.

The central bank has also been aggressively pushing for better transmission - simply put, the RBI wants banks to pass on these rate cuts to borrowers in the form of cheaper loans.

Another key development that borrowers need to be aware of is 'external benchmarking' - this will have a significant bearing on the rate of interest that you would have to pay on that home or car loan. So will rates fall further? What should old borrowers do? When should you think about switching that home loan?

In this episode, we discuss all these issues with Navin Chandani, chief business development officer at BankBazaar and personal finance expert Harsh Roongta.

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