 "Secondary loan mkt may completely change India's banking landscape: Experts")
A number of banks have met the Reserve Bank of India’s (RBI’s) October 1 deadline and launched loan products linked to external benchmarks. Most have chosen to link their home loan rates to the repo rate. Only Citibank has a product (launched in March 2018) linked to the three-month treasury bill rate.
Public sector banks have priced their external benchmark-linked loans lower than their private sector counterparts (see table).
Customers, who desire greater transparency, should shift to external benchmark-linked loans. “Only customers not comfortable with the higher and more frequent changes in loan rates should consider staying with the marginal
