New Delhi:
Gudnucus has come for people filling the EMI of Home Loan. The Reserve Bank of India has reduced the repo rate after 5 years, changing the monetary policy. This can affect your home loan EMI. A cut of 0.25 basis points has been announced in the repo rate. After this deduction, the repo rate came down to 6.25%. However, let us tell you that every bank should give the benefit of this deduction to its customers, they are not bound for this. But government banks like State Bank of India and Punjab National Bank have usually been giving the benefit of reducing repo rate to customers.
It is not necessary that the EMI of the loan is reduced …
The repo rate has come down by 6.50% to 6.25%, due to which people can get cheaper loans, but it is intended that banks are not bound to reduce their interest rates after the repo rate decreases. If a bank wants not to give the benefit of the reduced repo rate to the customer, then he can do so. However, when a bank cuts the interest rates of the loan, there is also pressure on other banks. Because now any customer can shift his loan to any bank.
How much can your EMI be reduced?
You can understand this with an example that if Ramesh has taken a loan of 30 lakh rupees from a bank for 20 years. Ramesh has taken this loan at 9 percent interest rate. Now if the RBI gives Ramesh’s bank the benefit of a cut of 25 basis points in the repo rate, then his interest rate will now be 9% to 8.75 percent. After this, Ramesh’s EMI, which was earlier Rs 26,992, will now be Rs 26,551. That is, after the cut of 25 basis points, Ramesh’s EMI will decrease at Rs 480. Please tell that if Ramesh does not want to reduce EMI, then the number of EMI can also be reduced.
What is a repo rate?
After the monetary policy meeting of RBI Governor Sanjay Malhotra (Monetary Policy Meet) chaired by RBI Governor Sanjay Malhotra, it was decided that the repo rate would be reduced. The repo rate is said to be the rate on which the Reserve Bank of India lends money to other banks. Now understand that if the Reserve Bank will lend money to other banks at a low interest rate, then those banks will also charge low interest rate from customers. Its direct effect will be seen on customers’ home loan, car loan, personal loans. Liquidity in the market increases due to decrease in repo rate.
Also read:- Good news on your home loan EMI, RBI reduced repo rate after 5 years, reduction of 0.25 %