RBI's rate cut will make loans affordable: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Friday said the RBI's decision to cut the benchmark lending rate will make loans affordable amid the COVID-19 crisis.

The RBI on Friday reduced the repo rate by 40 basis points to a historic low of 4 per cent, besides extending loan moratorium for all retail and commercial borrowers by another three months till August 31.

"The RBI decision, not just this one even earlier, has been very timely, well thought through and made a lot of difference then and I guess even now it will make a lot of difference to the sentiment which prevails and also immediately make affordable liquidity available," Sitharaman told DD News.

"The extension of the moratorium is something which all of us have waited for, and I only welcome the decision of the RBI like the last time. It is timely and purpose serving," she added.

(Photo credit: PTI)