New Delhi, July 13 -- The Reserve Bank of India's cumulative 125-basis-point reduction in the repo rate since February 2025 has lowered borrowing costs across the financial system, although the transmission of lower interest rates to borrowers remains uneven across banks, non-banking financial companies (NBFCs) and loan categories.

Repo-Linked Loans See Faster Rate Transmission

Under the RBI's External Benchmark Lending Rate (EBLR) framework, banks are required to link new floating-rate retail and MSME loans to external benchmarks such as the repo rate, reported Economic Times.

As a result, borrowers with repo-linked home, vehicle and MSME loans have generally benefited from faster transmission of policy rate cuts than those with loans...