RBI Monetary Policy Review: You have to pay lesser EMI for home, auto and personal loans
The RBI’s Monetary Policy Committee today cut the benchmark repo rate by 25 basis points to 5.15 percent, thereby reducing its key lending rates for the fifth consecutive time.
The RBI’s Monetary Policy Committee today cut the benchmark repo rate by 25 basis points to 5.15 percent, thereby reducing its key lending rates for the fifth consecutive time. The central bank said that it would continue with an “accommodative stance as long as it is necessary” to revive growth and ensure that inflation remains under check. Notably, the reverse repo rate under the LAF stands reduced to 4.90 per cent. Other key changes and how will they impact of your personal loan and homeloan rates are given here in brief.
Auto Loans
With today's repo rate by 25 basis points, you will have to pay less on your auto loan. Taking the five year auto loan period, if you have borrowed Rs 3 lakh, and have been paying an EMI of Rs 6184, it would be reduced to Rs 6148 and you will save Rs 432 on annual basis. On your Rs 5 lakh auto loan, you will save Rs 732 annually, while on loan amount of Rs 10 lakh, you will save Rs 1,452.
Home Loans
Personal Loans
In your personal loan amount for five year period, you will find a reasonable reduction. If you have taken personal loan of Rs 2 lakh, and have been paying an EMI of Rs 4500, it would be reduced to Rs 4474, thereby saving Rs 312 on annual basis. On your Rs 3 lakh personal loan, you will save Rs 456 annually.