Why loans could get more affordable this financial year.
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Apr 05, 2019
Thinking of taking a home loan, vehicle loan or personal loan? You’ll be glad to know that these financial solutions are pegged to become much more affordable this year. Due to stiff competition amongst lenders, interest rate on such loans was already quite low but recent announcements from the RBI could see the rates falling even lower in the near future. Let’s find out why.
RBI slashes REPO on 4th April, 2019.
The start of the financial New Year has brought good news to potential borrowers. The RBI, today, dropped its REPO rate by 25 base points, bringing the RBI’s current REPO rate to 6%. This is the second rate cut in the year. Earlier this year in Feb, the RBI had already reduced its REPO rate by 25 base points to begin with. This is amounted to a reduction of 50 base points in the REPO rate in the last few months, bringing it from 6.50% to a low of 6%.
What does this mean for new borrowers?
Considering that the REPO rate is that rate at which lenders borrow money from the RBI, a lowered REPO rate would mean that any one borrowing new loans should expect lower rates. However, one would have to wait for lenders to readjust their rates based on the reduced REPO rates.
What about existing borrowers?
This reduced REPO rate is good news for existing borrowers as well! Wondering how? Well, if you’ve opted for floating rates on any of your loans, the reduced REPO rate should translate into smaller EMIs in the future! Again, you’d have to wait as your interest rate will drop after the reset clause comes into play. If you have your reset clause in Jan then you will have to wait for revised rates to come into effect on your loan.
Applying for such loan has also become easier!
Previously, one would have to fill numerous forms, submit a long list of documents and take out time from busy schedules to visit a branch. All of this made the application process quite troubling. However, you can jump all of these hassles by opting to apply online. We offer an extremely simple application process and turnaround times of just 48 hours in most cases! All you have to do is visit our website and hit the ‘apply now’ button, before you know it you will have the funds you need disbursed into your account!
So if you are thinking for getting either a personal loan, home loan or vehicle loan, there’s probably no better time than this year. And if you’ve already opted for a loan, you can thank the RBI for smaller EMIs in the future. We hope this article has been helpful, good luck and happy borrowing!