RBI Repo Rate: The common man is going to get a big shock soon. In fact, according to a report, it is being said that your home and car loans are going to get costlier soon. To know the complete details of this latest update, stay with the news till the end….
The common man is going to get a big blow soon. In fact, your home and car loans are going to get costlier soon. The Reserve Bank of India ie RBI can increase the repo rate by 25 basis points. Because inflation remains more than the level of six per cent set by it. In fact, a poll of economists conducted by news agency Reuters has revealed that the RBI will hike rates in the upcoming policy review.
And this could be the last hike this year.If the RBI increases the rate again this time, then the total increase in the rate since May last year will reach 275 basis points. Compared to some other central banks like the US Federal Reserve, it is low. Now let us know what will be the effect of increasing the repo rate on you.
This will affect you-
After increasing the repo rate, banks will have to pay more interest to RBI, which banks will take from retail or corporate borrowers. Because of this, more interest will be required on the loan taken from the banks. Hence, loans can be costlier by one to two per cent in general. This will increase the rate on deposits by some margin. Due to this, Fixed Deposit ie FD will also become more attractive for investors. And customers will get fixed source of income. Due to this, more people will be attracted towards investing in FDs.
What you should do?
First, after the announcement of the increase in the repo rate, talk to your bank and get information about whether there has been any change in the interest rates on your loan. If the rate of loan has been increased, then some steps have to be taken to reduce it.
If you already have an existing long-tenure floating rate loan, you can reduce your loan tenure using any surplus cash. In this way, you can avoid the increase in interest rates on the loan. Also, in case of rate change, you can approach another bank, which may offer better terms on your existing loan.
