Cheaper Loans@REPO Rates
Loans are a big means of cash inflow in all spheres of economical activity for a stable growth of all sectors in economy. In the banking sector of Indian economy, Reserve Bank of India (RBI) is the premium institution which regulates all the national banks and their commercial activity by regulating the monetary policy and issuing the currency in the economy.
The Repo Rate of RBI is the rate of interest which it borrows from the banks. If there is a cut in the Repo Rate then it is a possibility that the bank rate will also reduce respectively. With the reduction in the Repo Rate which will aggravate to the reduction of Bank Rate, the amount of Interest rate will go down along with the rate of Interest which is charged on loans. Once the Repo Rates go down, then the interest rate of various loans will become cheap. This will help various investors in availing the facility of cheap loans for housing and industrial needs. This will lead to a totality effect in the Indian economy.
This will be a good move from RBI which will be in the interest of general public and industrialists who are going to benefited from this move.