Back

Raghuram Rajan springs surprise by cutting repo rate

Spreading the festive cheer more than a month ahead of Diwali, banks have started cutting home and auto loan rates. Immediately after the Reserve Bank of India (RBI) cut the repo rate (the rate at which it lends overnight money to banks) by 0.50% on Tuesday morning, banks started cutting their base rates – the lowest rate at which they can lend......

 

Vineet Jain, co-founder & CEO, Loanstreet.in, said: "As expected, SBI has taken the lead in rate cut, others are to follow soon. Lenders will pass on Early Diwali Bonus by following suit, fuelling the economy by positive sentiment generation and a push to the real-estate sector. Home loans will become cheaper by Rs 3,500 in EMIs and Rs 8,00,000 in total interest outflow for a Rs 1 crore loan with the current rate of 10.25%."

Read More at  http://bit.ly/1j26axJ