Banks likely to get cheaper funds for auto, realty loans

The Reserve Bank of India and the finance ministry are evaluating a 'funding for lending' scheme that will result in cheaper loans for sectors such as housing and automobiles. To achieve this, banks will be allowed to borrow from RBI at rates 1-2% lower than the market under a special scheme. "Refinancing under this scheme will enable cheaper auto and home loans," said atop official involved in the discussions.

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