Home, auto loans to become cheaper
Source: PTI Home, auto and other loans are set to become cheaper with Reserve Bank of India on Tuesday reducing the short-term lending rate by 0.25 per cent to over 5-year low of 6.5 per cent, taking the total cut to 1.5 per cent since January last year. Unveiling the first bi-monthly monetary policy for the current fiscal, RBI Governor Raghuram Rajan said banks have already cut interest rates by 0.25-0.5 per cent and after Tuesday's rate cut, borrowings will become cheaper. "Borrowing is cheaper...and will continue to do so," the Governor said, adding that the introduction of marginal cost of funds-based lending rate (MCLR) system will improve monetary policy transmission. The Reserve Bank has effected a rate cut after a gap of 6 ...
Indias external debt increased by 6.6% in last fiscal
The Dollar Business Bureau India’s external debt has gone up to $475.8 billion during the last financial year, an increase of 6.6% (29.5 billion) over $446.3 billion since the previous year. The rise was a result of increased commercial borrowings and NRI deposits. According to the Status Report 2014-15 on external debt released by the Ministry of Finance, India’s long-term borrowing from overseas grew at 10.3% to $391.1 billion during 2014-15. The long-term external debt contributed 82.2% of the total foreign debt in FY2015, compared to 79.5% in FY2014. “India’s external debt has remained within manageable limits as indicated by the external debt-GDP ratio of 23.8% during 2014-15. External debt of the country continues to be dominated by the long-term borrowings,” said ...
