Reserve Bank does not reduce repo rate… Who benefits from this..!
Although many people have been affected by the corona infection, such as job losses, loss of income, business expenses, and medical expenses, the last year has not been a jackpot for bank borrowers.
Yes, the Reserve Bank has cut interest rates sharply to boost the country’s trade and reduce the debt burden on the people. This has greatly benefited many.
In this context, many feared that the RBI’s monetary policy decision released today would raise interest rates, but the Reserve Bank did not announce any change in interest rates as predicted by Tamil Goodwill.
What is the repo rate?
The Reserve Bank of India today announced the repo rate, which is the interest rate at which the Reserve Bank lends money to banks. It has already been announced that the repo rate will continue to be 4 per cent for the next 2 months.
Reserve Bank
Similarly, the Reserve Bank of India has announced a reverse repo rate of 3.35 percent on loans to banks, an MSF rate of 4.25 percent, and a bank rate of 4.25 percent.
Who benefits from this announcement ..? Benefit ..? That’s when we’re going to see.
Home loan
It is certain that no bank will increase or decrease the interest rate on its loans as the Reserve Bank has not reduced interest rates today. In this case, the repo rate, MSF rate, and bank rate for home borrowers will not change and the EMI amount of home borrowers will not change. In the meantime, if you have not yet reduced your home loan interest rate to a repo rate, try to get a home loan immediately and approach the bank to reduce it. You will have to pay Rs 800 to Rs 1500 for this interest deduction and this amount will vary from bank to bank.
Car and bike loan
As for the home loan, the EMI amount is not likely to decrease or increase as the interest rate on the car and bike loan is not reduced. If the car and bike loan interest is high, you can get a loan by keeping gold jewelry. Thus one can easily reduce the interest paid to the banks. More money will be available for loans as the price of gold is currently high
Education loan
Students are the ones who will benefit the most from the Reserve Bank’s interest rate cut by Corona. With the +2 results coming out, those starting college in the next few months will now get education loans at lower interest rates than usual at the bank. Students, get the education loan available in the bank without any hesitation. Life will be better
MSME Institutional Loans
MSME is a sector that the central government relies heavily on to create more employment in India in a short period of time. The Federal Ministry of Finance has been offering a number of special loan schemes at very low interest rates to help companies in this segment continue to trade, take production to the next level and create employment. If the Reserve Bank raises interest rates at present, interest rates on this scheme will not go up.
Bank Deposit Fund
As already mentioned the interest rate on the loan has come down drastically in the last 1.5 years due to the large fall in the repo rate. The interest rate on bank deposits has fallen just as the interest rate on loans has fallen. This has affected the income of millions of Indians who depend on bank deposit finance. Only if the repo rate rises will the interest on the deposit fund rise.
