Is there a possibility of reduction in home loan, car loan EMI...!?

A home loan is a helping hand for the common man to realize his dream of owning a home. If the home loan interest rate is low, their EMIs will come down and they can breathe a little sigh of relief. It is the low-interest loans given by the banks that help the middle class to fulfill their lifelong dream of buying a house, buying a car, etc. In this case, market experts have expressed hope that there is a possibility of reduction in home loan and car loan interest rates. The Reserve bank of India, in a dark announcement on february 8, announced that there would be no change in the EPO rate. While there has been no change in the repo rate for the past one year, in the period between May 2022 and february 2023, the monetary policy rate of the Reserve bank (Reserve bank of India) increased by 250 bps. customers had to pay higher interest by taking this. However, customers are heaving a sigh of relief as there is no change in the repo rate.
With no change in the EPO rate, expectations of a cut in the repo rate have increased as retail inflation has eased. Experts say that by the end of the first quarter of FY2025, the RBI will cut repo rates and thereafter the EMI burden on loans will begin to come down by the end of the year. The RBI further said that the current 6.5% interest rate will continue for the next two months after the decision to keep the repo rate unchanged. The retail inflation rate for january fell to 5.1%, in line with the RBI's expectations. Core inflation is at 3.5 percent. As the prices of vegetables continued to decline, the yield of pulses, oils, fruits, and spices also declined. At the international level, despite many problems like war, economic conditions, lack of employment opportunities, and rising prices, India's inflation is decreasing, RBI governor Shakti Kanthas said. RBI predicts that India's GDP growth will be 7 percent by 2025. Noting that India's domestic trade is in good shape, the RBI governor also expressed confidence that trade will remain in good shape in 2024.India's total foreign exchange reserves rose by $591 million to $616.73 billion in the week ended january 26.
For more interesting updates wa click and follow Indiaherald WhatsApp channel

Find out more:

home loan EMI

Sowmiya Sriram

14/02/2024 06:54 PM