Question
Banks are required to use External Benchmark lending
rate for which of the following types of the loans:Solution
All new floating rate personal or retail loans (housing, auto, etc.) and floating rate loans extended by banks to Micro and Small Enterprises from October 01, 2019 and floating rate loans to Medium Enterprises from April 01, 2020 shall be benchmarked to one of the following: - Reserve Bank of India policy repo rate - Government of India 3-Months Treasury Bill yield published by the Financial Benchmarks India Private Ltd (FBIL) - Government of India 6-Months Treasury Bill yield published by the FBIL - Any other benchmark market interest rate published by the FBIL. Â Banks are free to offer such external benchmark linked loans to other types of borrowers as well.
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The traffic came to a standstill after the heavy downpour of rain.
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