Bank Loan EMI: RBI gives good news to loan borrower

Bank Loan EMI: Whether you want to take any type of loan from the bank like home loan, car loan, and personal loan or have already taken a loan, RBI’s decision will give you relief. In the 44th Monetary Policy Review Meeting, the Reserve Bank of India (RBI) did not change the repo rate.

For the third consecutive time in April, June and now August, the Reserve Bank has kept the repo rate at its old level. RBI Governor Shaktikanta Das informed about the decision taken in the MPC meeting held on Thursday. He said that the repo rate has been kept at 6.5 percent by consensus for the third time in a row.

Earlier, the RBI had raised the repo rate by two-and-a-half percent to control rising inflation. This change in repo rate was made from May 2022 to March 2023. Last year, the repo rate was at 4 percent till May 2022. But currently its rate is 6.5 percent.

RBI has left the repo rate unchanged for the third time in a row. That means, the repo rate will remain at the old level. As there is no change in this, your EMI will also remain at the old level. But in coming days, banks may reduce the interest rate of FD.

The repo rate is currently operating at its highest level in the last four years. Last year, the Reserve Bank started the process of raising interest rates to control rising inflation. After this there was a decrease in the inflation rate.

Customers who plan to borrow from the bank will benefit from no change in the repo rate. Banks do not increase the interest rate on any type of loan now. If RBI increases the repo rate, it will affect the credit available to customers.

The lending rate offered by RBI to banks is called Repo rate. Increasing the repo rate means that banks will borrow from the RBI at a costlier rate. This increases the interest rate of home loan, car loan and personal loan etc. This will directly affect your EMI.

Also Read: SBI Amrit Kalash FD Scheme: Last date, special FD benefits and interest rate