New Delhi:'Achhey Din' may have finally arrived for you. Be ready for good times. Your EMIs on home loans and auto loans will now come down, plus you can expect some bumper festive loan offers from banks. All this thanks to Reserve Bank of India's decision to cut interest rates by 0.25%
Financial experts say that the cut in lending rate will bring down home loan rates to an average of around 8.2% per annum. Coupled with rate cut, festive season too is about to start with Eid, Ganesh Chaturthi, and Dussera lined up over the next two months. Keeping the festive season in mind, the banks are likely to offer additional discounts on loans.
RBI Governor Urijit Patel hopes that the banks will pass on the 0.25% cut to the customers. If that happens, then let us see how much your EMIs will come down.
Experts are of the view that base-rate customers should switch to MCLR based loan regime to take advantage of the lower interest rates. But, old borrowers under the MCLR regime should adopt wait and watch policy. “Normally MCLR-based home loans are reset once a year. However, if the loan rate charged to them is higher at the existing lender, they can think of switching the loan portfolio to another lender that would take over the outstanding balance at a lower rate of interest. If the gap of interest rates between the existing and new lender remains more than 1% or so, it would make sense to switch the loan,” a website quoted Wishfin.com CEO Rishi Mehra as saying