Good news for homebuyers! During the end of September 2015, RBI made a surprise move by reducing the repo rate to 6.75%, that is, by 50 basis points. It has made a positive impact on the home loan interest rates as the banks have reduced the same by 40 basis points. Several types of home loans are being offered by the banks at reduced rates.
For the readers who do not know much about Repo Rate, here is a detailed description.
Repo rate is the rate at which the RBI lends money to other commercial banks when they fall short of funds. A reduction in repo rate means that the banks can borrow funds from the central bank at lower interest rates and when they are benefitted they pass on the benefits to their customers by reducing the rates of interest on different types of loans they offer like home loan, car loan, etc. [Read more…]