• Rajasthan

    Cong 94
    BJP 80
    RLM 0
    OTH 25
  • Madhya Pradesh

    Cong 109
    BJP 110
    BSP 6
    OTH 5
  • Chhattisgarh

    Cong 60
    BJP 21
    JCC 8
    OTH 1
  • Telangana

    TRS-AIMIM 89
    TDP-Cong 22
    BJP 2
    OTH 6
  • Mizoram

    MNF 29
    Cong 6
    BJP 1
    OTH 4

* Total Tally Reflects Leads + Wins

RBI policy review: How 25 bps repo rate cut may impact your home, car loans

By: | Updated: April 5, 2016 12:12 PM

RBI on Tuesday cut key policy rate by 0.25 per cent to 6.5 per cent. A short take on how a matching 25 basis points cut in lending rate by banks would ease impact repayment burden of borrowers.

Home loans - RBi monetary policy reviewReserve Bank of India Governor Raghuram Rajan announced a 25 basis points cut in repo rates in its credit policy on Tuesday.

Radius Developers is now building 350 sq ft carpet area studio apartments at less than Rs 1 crore for singles. (Source: Thinkstock)

Retail lending, including home and car loans are soon to become cheaper with the Reserve Bank of India Governor Raghuram Rajan announcing a 25 basis points cut in repo rates in its credit policy on Tuesday.

With the RBI keen to ensure that banks transmit its interest rate cut signal to the customers, lenders may soon announce cut in lending rates.

Borrowing is significantly cheaper now and will continue to do so, Rajan said.

Here is a short take on how a matching 25 basis points cut in lending rate by banks would ease repayment burden of borrowers. However, the extent of absolute benefit will also depend on the loan amount and the tenure.

ratecut-homeloans

With inputs from Anil Rego, CEO and founder, Right Horizons.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition