New Delhi, Feb. 14 -- Gold loan rates are not likely to come down for borrowers even as the Reserve Bank of India (RBI) cut the repo rate in January, according to George Alexander Muthoot, managing director (MD) of Muthoot Finance.

In an interview withMint, Muthoot said that cost of funds is likely to come off only marginally and, therefore, he does not expect that to translate into lower lending rate.

"Cost of funds may come down by some 5-10 basis points. I don't expect lending rates to come down by such a small amount," said Muthoot. "We will, however, maintain margin at 10.0-10.5%," he added.

A basis point is one-hundredth of a percentage point.

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