Home, Auto Loans To Be Cheaper Even As RBI Maintains Status Quo

RBI, the key Indian banker to Indian banks has maintained status quo i.e. has not changed repo rate in view of the high inflation. Nonetheless, borrowers may get a relief because of the MCLR and repo rate cut effected by banks in the recent past.

So, as and when the reset is scheduled for you, borrowers with loans pegged to MCLR and repo rate may benefit.

Home loan rate which is said to be at a historical low as we see from SBI's 1-year MCLR rate which currently stands at 7%, may trend further down as banks to give a push to these loan products may further revise interest rates lower. In July 2016, this SBI rate was at 9.15 percent.

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