Economics · Banking and Finance
Consider the following statements regarding floating rate home loans in India: Statement 1: The floating rate of interest is mandatorily linked to an External Benchmark (like the RBI Repo Rate) for all new retail loans. Statement 2: When the Repo Rate increases, banks can automatically increase the loan tenure to keep the EMI constant, subject to regulatory ceilings. Statement 3: RBI guidelines require banks to provide an option to the borrower to switch to a fixed interest rate at the time of interest rate reset, subject to policy and reasonable charges. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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1, 2 and 3
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