Homes loans to get cheaper as RBI cut repo rates by 0.25 per cent

By Accommodation Times News Services

image of interest cutIn a view to boost the economic growth Reserve Bank of India (RBI) decided to cut the benchmark interest rate by 0.25 per cent to 7.75 per cent. This is the first rate cut from RBI since 2013. With the effect to rate cuts EMIs for home loans is to be reduced.

Many leading banks and financial institutions has welcomed the RBI’s move to reduce the rates and they confirmed that soon EMIs will come down, as they will reduce their interest rates.

State Bank of India the leading government bank said, they are planning to cut down their lending rates following the RBI’s move, the board will take a decision on this. Union Bank of India also said it would cut its base rate by 25 basis points to 10 per cent from February 1. Hence, the sudden rate cut comes with a sigh of relief for borrowers.

The decision was sudden and came two weeks before the schedule date of monetary policy to be announced by RBI on 30th February.





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