New Delhi, April 17 -- Rating agency ICRA believes domestic borrowers will benefit from the RBI's proposed introduction of 'blended interest rates' in co-lending loans.

On April 9, RBI has shared a draft framework to specify the regulatory norms and guidance for all co-lending arrangements, in general, besides for addressing certain prudential issues.

According to ICRA, as per the existing practice, borrowers are charged an all-inclusive interest rate as agreed upon by the lending partners.

The draft directions propose to shift to a blended interest rate, which is calculated as an average rate of interest derived from the interest rates charged by respective funding entities, weighted by their proportionate funding shares.

"If the sam...