No changes in interest rate: no prospects for reduction in EMIs for house & vehicle loans!
Posted on: 04/Feb/2015 3:32:17 PM - No. of views : (2298)
As the Reserve Bank of India has not reduced the lending interest rates, there are no prospects for reduction in the EMIs paid for House & vehicle loans.
RBI released the report on the review of the Finance Policy yesterday (Tuesday, 3rd February).
There are no changes in the conditions for short-term loans. Hence, the interest continues to be 7.75%
However, the Statutory Liquidity Ratio (SLR), (Banks� Investment on Government Bonds) has come down from 22% to 21.5% with a reduction of bsps 50 (basic points).
This will increase the money circulation in banks and also the banks� lending activities. Hence, the industrial sector has welcomed this development.
No changes are made in the cash-on-hand respect. It stays at 4%.
It is worth noting in this juncture that the Reserve Bank of India, with its serious intent to curb the inflation rate, made a surprise announcement about the reduction in the rate of interest for lending from 8% to 7.75%.
