Prospects of EMIs (Equated Monthly Installments) on house/car loans to reduce!
Posted on: 17/Jan/2015 3:31:31 PM - No. of views : (2300)
Reserve Bank of India is set to release the revised finance policy on 3rd February.
Prior to this, RBI has reduced the interest rate on money lent to other banks by 0.25% from the existing 8% to 7.75%. This is known as REPO - Repo rate is the rate at which the central bank of a country (RBI in case of India) lends money to commercial banks in the event of any shortfall of funds.
However, there are no changes in other interest rates.
No changes are made on the banks� cash-on-hand� ratio which remains at 4%..
The inflation on retail trade has increased slightly from 4.38% to 5%,This figure remains less than the target rate of 6% considered by RBI. This factor can be attributed to be one of the reasons for reduced interest rates.
This is the 1st reduction in interest announced by RBI after May, 2013.
This measure will facilitate reduction in EMIs (Equated Monthly Installments) paid by the public on house/car loans.
Traders and industrialists have welcomed this announcement.
