North India Statesman
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If you are filling a home loan, car loan or any kind of EMI, then this news can bring a smile on your face. Just before the festive season, the Reserve Bank of India (RBI) can give you a large gift of interest rate cuts, which can reduce your pocket burden.
SBI report raised hope
This hope is aroused by a research report by State Bank of India (SBI), the country’s largest bank. SBI economists estimate that RBI Repo Rate in Monetary Policy Committee (MPC) meeting to be held this month 0.25% (25 basis points) Can cut
What is repo rate and how will you benefit?
They consider it in easy language. The repo rate is the rate at which RBI gives loans to other banks.
- When RBI Repo Rate ReducesSo banks get cheaper debt.
- Banks provide this to their customers and reduce interest rates on home loans, car loans and personal loans.
- Due to low interest rates, your EMI going every month also decreases.
Why can there be a cut?
According to the report, the inflation rate in the country is now under control and the interest rate cuts can be an essential step to give further speed to economic growth.
Now everyone’s eyes are on the RBI MPC meeting, which is to be done at the end of this month. If this prediction of SBI is true, then it will be a great relief for crores of borrowers, especially when expenses increase in the festive season.
