Cost of borrowing very stressful, banks need to make interest rates affordable: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Monday said bank interest rates are very stressful for some people, and steps are needed to make them affordable.

Amid widespread concerns about a possible slowdown in economic growth, the finance minister assured that the government is fully aware of the domestic and global challenges, and added that there is no need to have "undue concerns".

"What is important is when you look at India's growth requirements, and you can have so many different voices coming out and saying the cost of borrowing is really very stressful, and a time when we want industries to ramp up and move (to) building capacities, bank interest rates will have to be far more affordable," Sitharaman said.

Speaking at the annual business and economic conclave organised by SBI, the minister also asked banks to concentrate on their core function of giving loans and added that the "misselling" of insurance products also indirectly adds to the cost of borrowing for an entity.