Rate Cuts: Recently, the Reserve Bank of India has cut the repo rate by half a percent, making it even cheaper to take a loan. So far this year, RBI has cut its rates three times, which has reduced the total by 1%. After this decision, many big banks have also started reducing their loan prices. In this episode, Punjab National Bank and Bank of India have announced a reduction in their loan rates, which will make it a little easier for the common people to take a loan.

PNB’s new loan rates and its impact

When Punjab National Bank informed about its new loan rates after the stock market closed, it said that after the RBI’s repo rate cut, it has also cut its repo linked lending rates. Till now these rates were 8.85%, which has now come down to 8.35%. However, the bank also said that no change has been made in MCLR and base rate yet. These new rates will come into effect from June 9, which means that the borrowers will get some relief and their EMI will be affected.

Bank of India also confirmed the rate cut

Bank of India also told the stock market that with the reduction in RBI’s repo rates, it has also cut its repo based lending rates. The new RBLR of the bank has now become 8.35%, which was earlier 8.85%. These new rates have come into effect from June 6. This means that the customers of Bank of India will also be able to take advantage of cheap loans.

Karur Vysya Bank also announced a cut in loan rates

After PNB and Bank of India, Karur Vysya Bank has also announced a cut in its MCLR i.e. Marginal Cost of Fund Based Lending Rates. The bank has reduced both 6 month and 12 month MCLR. Now the 6-month MCLR has come down from 9.9% to 9.8%, while the 12-month MCLR has come down from 10% to 9.8%. This will give some relief to the bank’s loan customer.

RBI’s cut makes it easier to take loans

With this half percent cut in the repo rate by the Reserve Bank, the cost of loans is coming down in the entire banking sector. Now borrowers will get loans at a lower interest rate, which will reduce their burden and boost economic activities. Especially these days when inflation is rising, such relief will prove to be a big help for the common man.

But the point to note is that the reduction in interest rates will also have a direct impact on the EMI of your loan, which can reduce your monthly financial responsibility. In such a situation, if you have not taken any big loan yet or are thinking of taking a new loan, then this can be the right opportunity.

Take advice before investing

Still, it is important to understand every advice related to banking and investment carefully. The advice given on CNBC TV18 Hindi and CNBC Awaaz are the personal views of the experts and the brokerage firm. Therefore, before making any kind of investment or taking a big loan, definitely consult your financial advisor or a certified expert so that you can take the right decision.

In this way, with the reduction in the repo rate of RBI and the reduction in the loan rates of big banks, it is now going to be a little cheaper and easier for people to take loans, which is also a very good sign for the economic progress of the country.