Home loan is good news for customers. RBI has reduced the repo rate for the third time in 5 months. The repo rate has come down to 5.50 per cent after the reduction of 50 bps. This will reduce the EMI of home loan. This is big news for home loan customers burdened with EMI burden for a long time. It was expected to be expected in advance.
MPC decided to reduce repo rate
Rbi Monetary policy of (MPC) The meeting started on 4 June. Its results were announced by RBI Governor Sanjay Malhotra at 10 am on 6 June. He has reduced the repo rate as expected this year for the third time. He said that the Indian economy has good health amid global uncertainties. In such a situation, India has good possibilities for foreign investors.
Repo rate came at 5.50 percent
The repo rate has now come down to 5.50 percent. This means that banks will have to reduce interest rates of other loans including home loans. This will benefit new and old customers of home loans. RBI has reduced the repo rate by 0.50 per cent. Economists and experts were estimated to reduce the repo rate by 0.25 per cent.
Repo rate decreases more than expected
Experts believe that old and new customers of home loan will benefit a big benefit from this decrease in repo rate. The 0.50 per cent repo rate means that the bank and NBFC will have to reduce the interest rate of home loan and auto loans immediately. Currently, the interest rate of home loans of many public sector banks is between 7.75 and 9 percent. Half a percent reduction in the repo rate means that home loan interest will decrease to at least 7.25 percent.
Also read: RBI MPC Meeting Live
Repo rate decreased by 1 percent in five months
Experts say that this year RBI has reduced the repo rate for the third time. For the first time in February this year, he had reduced the repo rate by 25 basis points. The second time he lacked 25 BPS in April. Now for the third time he has reduced the repo rate by 0.50 percent. Due to this, the repo rate which was at 6.5 per cent earlier this year has come down to 5.50 per cent.
You will get benefits like this
Banks and NBFCs will no longer be able to delay in reducing the interest rate of home loan, as the RBI has increased the repo rate by 50 basis points. If you have taken a home loan, then you should wait to reduce your bank’s interest rate. If you have taken a loan at a floating rate, then your interest rate will be reduced by itself. This will reduce your EMI. If your bank does not reduce interest rate or you have taken a loan at fiscated interest rate, then you can transfer your loan to another bank.