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Knowledge Drive: Fee of transmission

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Whereas the Reserve Financial institution of India hiked the repo price by 40 foundation factors on Wednesday, the proportion of floating price loans linked to exterior benchmarks rose from 9.3% in March 2020 to 39.2% in December 2021, which helped sooner transmission.

The sustained decline in MCLR and the periodic resetting of loans at decrease charges have benefited debtors.

Nonetheless, that’s going to vary now after the speed hike.

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