Monthly installments on car\, home loans may fall marginally on RBI rate cut

Monthly installments on car, home loans may fall marginally on RBI rate cut

However, a point to note is that banks seldom pass on the entire rate cut

Sanjay Singh & Tinesh Bhasin 

The Reserve Bank of India's (RBI's) surprise 25 basis point (bps) repo rate cut is likely to bring some cheer to borrowers of home and car loans. Adhil Shetty, CEO of Bankbazaar.com, says: "The rate cut is most welcome.

But we need to wait and see how much of the 25 bps cut is transmitted to retail borrowers." That is, it is over to banks now to transmit the rate cut to, not just new borrowers, but also existing borrowers. If the entire rate cut is passed on by banks, there would be some relief to borrowers. For example, if a 20-year home loan of Rs 75 lakh was ...

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Read our full coverage on RBI monetary policy
First Published: Thu, February 07 2019. 22:53 IST