Lenders across the country borrow funds from the Reserve Bank of India for lending purposes. Now, lenders can borrow money without pledging any security or by pledging government securities, such as cash and gold. When commercial lenders borrow money by pledging government securities, the Reserve Bank of India charges interest in the form of the Repo Rate. Repo is the short form for Repurchase Agreement. … Continue reading Understanding Repo Rate: Impact on Home Loans and Borrowing Costs