However, the Home loan interest rate depends upon the repo rate, Reserve Bank of India (RBI ) controls this repo rate and reverses the repo rate. The interest rate in the system may increase in the next few months. Some financial experts expect that the interest rate may increase in June.
The managing director of State Bank of India has said according to financial experts' advice the interest rate may change soon. The managing director of the Star Housing finance service said that the interest rate should increase.
As a result, the EMI will increase or the time period of the home loan may increase. They said that they will make a decision carefully.
The Banks said that the interest for fixed deposits will increase. Market experts expect that retail borrowers will be benefited very soon. The rate of interest has increased in the last few months but the small retail deposits increase only 5 basis points
The Review meeting will be held in June.
RBi will make some systematic changes and be ready to keep the rate cycle effective. Crisil's report believes that changes in the corridor of the Liquidity adjustment facility market will be ready for an increase in repo rate. Market experts expect that there will be some changes in 50 to 75 basis points.