Rise in Policy rate have less effect to Home Loan

By Staff Reporter
 
From last few months market is facing high inflation rate, there are several reasons of high inflation rate. Whereas government and RBI are busy to tackle with the situation of crisis. To control inflation from last one year RBI is taking some robust actions such as it has implemented the monetary policy.  
According to reports of market analyst there are several reasons behind constant rise in inflation rate, the prime reason is that mounting rates of international commodity like crude oil, coal, non manufacturing etc. are badly affecting to markets and Home Loan borrowers.
When there is rise in rates of commercial banks cost fund it means RBI is raising it policy interest rates. Whereas base rate has direct relationship with the banks interest rate on various loans. RBI has played the vital role to control the inflation rate as it has implemented the monetary and this step has shown the less impact on the borrowers and business. Hike in interest rate has raised the burden on the corporate & individual borrowers hence EMI’s doesn’t affect to Home Loan borrowers.





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