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RBI Monetary Policy: Repo rate reduction after 5 years, know what will be the effect on your home loan EMI

RBI mpc The decision that came tomorrow has received the good news of cutting rates after a long time. The Reserve Bank of India has reduced its main policy rate for the first time in 5 years, which is called repo rate. In the final decision of RBI MPC on 7 February yesterday, it has been decided to reduce the repo rate from 0.25 per cent to 6.25 per cent. With this, commercial banks who give loans to common people can also cut interest rates on loans. With this decision of RBI, people will be able to get cheaper loans at a low interest rate and will be able to come on the country’s sluggish growth. Experts say that people who have taken loans from commercial banks at floating rate are also expected to decrease in the coming time of the loan of customers. However, it should also remain in mind that there will be no change in the EMI of those who have already taken loans at a fixed rate.

Experts believe that this deduction in the repo rate will provide relief to the general public. Cash will increase in the market. Let us know what is repo rate and why it is considered important. Repo Rate fixed by RBI is a very important financial tool. In a way, the country’s economy is controlled with the help of repo rate. Repo Rate is the interest rate on which commercial banks take loans from RBI for a short period of time. When the RBI reduces the repo rate, the bank gets money at low interest. With this, banks can give cheap loans to their customers. On the contrary, the loan becomes expensive as the repo rate increases, which reduces demand and controls inflation.

After the repo rate cut from RBI SBI MD Ashwini Kumar Tiwari It has also been said that interest rates will also be cut soon from their behalf. The rates will be reduced soon by SBI. EMI of loans related to repo will be reduced. Now the loan will be cheaper. RBI has taken steps to increase cash in the system. This will provide relief to the middle class. This is a better decision for economy. Middle class will get relief from getting extra money. Increased consumption will also increase demand capacity. This is a commendable step to increase domestic consumption.

Experts say that banks and housing finance companies may take some time to reduce the repo rate to consumers. It will depend on the consumers how the policy and the rate cycle is. This decision of RBI will benefit the real estate sector. People will be attracted to buy homes and invest in property. It is expected that due to this, GDP will also lead to an increase in the financial year 2025-26 period.

If you use these 5 tips, then your expenses will decrease on home loan interest

How much EMI can decrease?

To understand this, it is assumed that someone has taken a home loan of Rs 50 lakh for 30 years from a commercial bank at a floating rate of 8.75 percent. In such a situation, the EMI of the loan on this loan would have been Rs 39,335. After the rate cut, the interest rate can now come down to 8.50 per cent, which will reduce the monthly EMI of the loan taker to Rs 38,446. At the same time, if this loan has been taken at 9.55 per cent interest rate by the loan taker, then EMI will also be reduced from Rs 42,225 to Rs 41,315 if the applicable interest rate on it is reduced to 9.30 per cent.

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