The Reserve Bank of India (RBI) is going to bring a big good news for the general public. In the coming time, home loan borrowers can get a big relief, as there is a possibility of a cut in interest rates. If RBI takes this decision, it will not only be beneficial for the people dreaming of buying a house, but the real estate sector can also get a new impetus. Let us know the reasons behind this possible decision and what effect it will have on the common people. So, if you are also thinking of taking a home loan, then this news is very important for you.
RBI’s decision will have a direct impact on your EMI
A decision to cut the repo rate can be taken in the RBI Monetary Policy Committee meeting to be held between June 4 and 6. The repo rate is the rate at which RBI gives loans to the banks of the country. If it is cut, then the home loan and car loan of the common man can become cheaper. Along with this, the real estate sector can also see a boom. This news can bring a big relief to millions of people who are dreaming of buying a house in this era of inflation.
Why can RBI take this big decision
According to Sunny Agarwal, Deputy Vice President of SBI Securities, all factors are pointing towards a cut in the repo rate. Inflation is in line with the target set by RBI, and GDP growth is also stable. The RBI Governor had told in the last Monetary Policy Committee meeting that if inflation remains at the set target, the repo rate can come down even further. This statement raises a big hope for the common man.
Interest rates can come down this much by Diwali this year
Giving a Diwali gift to the people, RBI can cut the repo rate by 0.75% by October! The repo rate, which is currently running at 6%, can come down to 5.25% by October 2025. Along with this, the repo rate can be cut by 1%, i.e., 100 basis points, by the end of this year.
After this, it will come down to 5%. This reduction in interest rates will reduce the EMI for home loan borrowers to a great extent, thereby reducing the burden on their pockets. This will also prove to be a boost for the real estate sector, as lower interest rates will encourage more people to buy homes.