Loan Rate Cut by Banks: After the cut in repo rate, banks have also started reducing interest rates. SBI and some other banks have reduced the loan rates. Due to this, taking other loans including home loan has become cheaper. Banks have also reduced interest rates on deposits. Due to this, customers will get less return on deposits.
After the cut in repo rate by the Reserve Bank, banks have also started reducing the interest rates of loans. Many banks including State Bank of India (SBI) and Bank of India (BoI) have reduced the loan rates. This has made home loans, car loans, personal loans, education loans etc. cheaper. Both new and old customers will get the benefit of this. If you are planning to buy a house, then now you will get home loan at a cheaper rate.
SBI has cut the interest rate on the loan by 25 basis points i.e. 0.25%. This will provide relief to both old and new loan takers. After this cut, SBI’s Repo Linked Lending Rate (RLLR) has come down to 8.25%. At the same time, the External Benchmark Based Lending Rate (EBLR) has come down to 8.65% after a cut of 25 basis points. After this cut, it will become cheaper for both existing and new borrowing customers of SBI to take loans. The new interest rates have come into effect from today i.e. 15 April. The good days of FD are over! Banks are reducing interest rates rapidly, many special schemes are closed, will the crisis come more?
Reserve Bank has reduced interest rates
Reserve Bank has reduced interest rates twice in the last two months. The central bank had reduced interest rates by 25 basis points in February. After this reduction, the repo rate was reduced to 6.25%. At the same time, the Reserve Bank has also reduced interest rates by 25 basis points last week. After this second reduction, the repo rate has come down to 6 percent.
These banks have also reduced interest
Apart from SBI, Bank of India (BoI) and Bank of Maharashtra have also reduced interest rates. Both the banks have reduced the interest rate of home loan by 0.25 percent. New and existing customers of the bank will also benefit from this. Bank of India said that the rate of home loan has come down to 7.90 percent per annum on the basis of CIBIL score. These rates of the bank have been implemented. On the other hand, the interest rate of Bank of Maharashtra has been reduced from 9.05 percent to 8.80 percent.
But here the scissors were cut
Along with the reduction in loan interest rates, banks have also reduced the interest rate on savings account deposits. These include SBI, HDFC etc. SBI has reduced the interest rate on deposits by 0.10 to 0.25 percentage points. HDFC Bank has reduced the interest rate on savings accounts by 0.25 percent to 2.75 percent, which is the lowest among other private sector banks.
