Repo Rate Declined by RBI- Though a salaried person or an entrepreneur with a small organization, or even if a high entrepreneur, all are going to get relief from some kind of financial relief. In its recent monetary policy review, the Reserve Bank of India (RBI) has reduced the Repo Rate, thus making it cheaper and easier for people to avail borrowings. Now you will get cheaper loan from RBI
This move will particularly benefit those planning to take home loans, car loans, education loans, and personal loans-the EMIs are going to go down substantially. So let’s just get into the nitty-gritty of what’s changed and how it would affect your life daily.
What Is the New RBI Repo Rate?
The RBI has reduced the Repo Rate by 0.25% (25 basis points).
| Rate Type | Previous Rate | Current Rate |
|---|---|---|
| Repo Rate | 6.50% | 6.25% |
| Reverse Repo Rate | 3.35% | 3.10% |
| MSF Rate | 6.75% | 6.50% |
Who Benefits the Most from This Decision?
Home Loan Borrowers
Your monthly EMI will be lowered, allowing you to save more every month.
Vehicle Buyers (Car/Bike)
Lower interest means it is now cheaper to own that dream car/bike.
Students
Are you planning for higher education? Well, education loans just became cheaper, relieving your financial pressure.
Small Business Owners
Interest on working capital loans has dropped, thus helping you in cash flow and operations.”
Which Banks Have Already Cut Interest Rates?
Following the RBI’s decision, major Indian banks have responded swiftly:
| Bank Name | Old Home Loan Rate | New Home Loan Rate |
|---|---|---|
| SBI | 8.50% | 8.25% |
| HDFC Bank | 8.75% | 8.50% |
| ICICI Bank | 8.60% | 8.35% |
| PNB | 8.40% | 8.20% |