Personal loans likely to become cheaper as RBI cuts risk weightage
Thursday, August 8, 2019, 6:11 PM
The RBI has reduced risk weight for consumer credit, including personal loans but excluding credit cards, from 125% to 100%, allowing banks to reduce their interest rates. Banks are required to set aside a percentage of the loan amount, depending on the risk perception of a loan type. Banks will now need to set aside lower capital for these loans.