With the decision of reducing the repo rate has provided a lot relief to investors who are planning to invest more in property business as well as for home loan seekers. It has been lowest of last four years and can easily help in economic growth of the country with help of low inflation.
To simplify, home loans will get cheaper and loan eligibility will increase for borrowers creating a super borrowing environment specially for retail customers. The retail credit sector is going to hike up and demands for personal loans as well as mortgages will boost up.
It makes a perfect time for now to buy a home or pic a mortgage. It now remains to be seen how the banks react and when they start reducing their lending rates. Banks are expected to pass on the rate cut benefits to their customers by offering home and vehicle loans at cheaper rates. The EMIs — equated monthly instalments – of existing customers are also likely to come down.
Since January 2015, the RBI has cut the repo rate by 1.50 per cent and banks have reduced their lending rates by about 0.5 percent.
Along with the unexpected rate cut, analysts feel, a massive pay out for government employees will leave extra cash in people’s pocket at the beginning of the festive season.
Along with the unexpected rate cut, analysts feel, a massive pay out for government employees will leave extra cash in people’s pocket at the beginning of the festive season.
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