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Home Loan offers: After the increase in the repo rate by the Reserve Bank of India, many banks have also made loans expensive. We would like to tell you that the Governor of the Reserve Bank of India Sri Sashikanta Das has announced an increase in the repo rate by 0.40%. Now the current repo rate is 4.40%.
After an increase in repo rate by the Reserve Bank of India all banks increase their interest rate on Home loans and car loans. All home loans and car loans get expensive. After the loan becomes expensive, many challenges have arisen in front of the people. People are not able to understand from which bank to take a loan to buy a home, whose EMI is cheaper.
We would like to clear this confusion here we have given details about the home loan interest rate of some banks.
Banks increase their loan interest rate after increased repo rate by Reserve bank of India. Whenever banks increase the interest rates home loans and car loans get expensive.
You have to pay more EMI every year.
When interest rates increase the EMI also increases. The biggest thing is that the home loan EMI continues for long period of time. So common people have to pay more EMI which creates big trouble.
Why was the repo rate increased by RBI?
The expensive loan will reduce inflation.
Inflation will reduce in the coming days due to the cost of loans. The economist Dr.Sudhanshu Kumar has said When the demand in the market was reduced due to the pandemic, all the central banks reduced the capital cost by reducing the interest so that the demand could be artificially boosted. This was necessary at the time to support economic growth. Now the time has changed.
He also said that to control inflation if we will reduce the liquidity as per monetary policy to control the demand artificially, it will support to control the of inflation. For this reason, all central bank of America Federal Bank has increased its interest rate.
What is the repo rate?
The Repo rate is the rate at which the central bank of a country lends money to commercial banks. The Repo rate is used by monetary authorities to control inflation. In India, it is controlled by the Reserve Bank of India.
