RBI's decision to cut lending rate will make loans affordable: Sitharaman

The RBI reduced the repo rate by 40 basis points to a historic low of 4 per cent, besides extending loan moratorium for all retail and commercial borrowers by another three months till Aug 31

Finance Minister Nirmala Sitharaman on Friday said the RBI's decision to cut the benchmark lending rate will make loans affordable amid the Covid-19 crisis.

The RBI on Friday reduced the repo rate by 40 basis points to a historic low of 4 per cent, besides extending loan moratorium for all retail and commercial borrowers by another three months till August 31.

"The RBI decision, not just this one even earlier, has been very timely, well thought through and made a lot of difference then