RBI holds rates steady in February, opts for liquidity injection over hikes

For DSAs and loan connectors, a frozen policy rate means funding costs for loans remain predictable. Banks are unlikely to pass on sudden rate hikes to borrowers in the near term, allowing connectors to lock margins and forecast yields with more confidence. This stability is crucial for volume planning and customer acquisition costs.

Borrowers—and by extension, the entire distribution chain—benefit from EMI predictability. Without rate moves on the horizon, existing loan books remain insulated from repricing pressure, and new disbursements can be quoted without factoring in imminent policy shocks. This creates a window for connectors to grow volume without customer shock from rising EMIs.