Loans will be Cheaper After RBI Announcement, Banks can Reduce the EMI Soon

New Delhi : npnews24 : The country has a 21-day lockdown due to the coronavirus. In such a situation, the economy is being affected. To give relief to the people, country’s central bank RBI (RBI) has also made some big announcements on this issue. Accordingly, the repo rate has been cut by 75 basis point. After this reduction, the repo rate has come down from 5.15 to 4.45 per cent. This reduction in the repo rate is the largest in RBI history. Also, the RBI has reduced the reverse repo rate by 90 basis points to 4 percent.

Loans will be cheap –
After the big announcement by RBI, the benefit of this repo rate reduction will be given to people buying home, car or other types of loans. However, now it has to be seen how banks give benefit to their customers. If banks give direct benefits, then many types of loans that customers get from the bank will become cheap, such as home loans, vehicle loans etc. This is the rate at which banks get interest on the amount deposited in the RBI on their behalf.

EMI will be less –
RBI has reduced the repo rate by 0.75 per cent to 4.40 per cent. This decision will provide relief to the common man along with banks. Soon banks can take decisions to reduce EMI of their customers. Experts believe that the benefit of the repo rate reduction will benefit crores of people who pay many EMIs, including home, car or other types of loans.