As the repo rate skyrocketed from 4% to 6.5% over the last 20 months, the debt burdens of home loan borrowers ballooned, as EMIs increased and loan tenures extended, sometimes well beyond retirement age
As you know, changes in MCLR and RLLR have a direct impact on the loan rates. As a result, these adjustments alter the Equated Monthly Installments (EMIs) of borrowers.
The Reserve Bank of India s decision to maintain the repo rate at 6.5% for the fifth consecutive time is expected to support the housing property market, particularly in mid-income and premium housing sales. The move is seen as promoting a consistent trajectory of growth in home sales, with stable interest rates benefiting both residential and commercial real estate.
RBI policy meet: The central bank s move reflects its confidence in the country s economic fundamentals as well as growth prospects and will ensure EMI stability for borrowers