RBI Rate Cuts by .25 basis points | Effect on Home, Car and Personal loans

RBI Cuts in Repo Rate 19th March 2013, RBI has cut its key repo rate by 0.25 per cent to 7.5 per cent on 19 th March. However, it kept the cash reserve ratio (CRR) — the proportion of deposits that banks have to mandatorily park with the RBI — at 4 per cent, the lowest since December 1974.

This is the second rate cut after the Jan rate cut.

The RBI had reduced the repo rate by 25 basis points to 7.75 per cent in January after holding it steady for nine months.

RBI Rate cut on 19 March 2013 and effects on Home loans

WE expect Home loan rates for new customers to come down by .25 % .So  Home Loans below 30 Lacs can go down to 9.75% and loans above 30 lacs can touch 10% mark. These rates will be reduced by banks to woo customers to take home loans and increase their sales.

For already existing customers, Banks are at time slow to react but we expect rates to come down by .25 % for them. So you can expect your EMI to be lower by 300 rs if your loan amount is around 20 lacs.

RBI rate cut on 19 the March 2013 and effects on Car loans

The car sales have dropped 12 % in February which is a big dampener for the industry. With these rate cuts Banks will reduce rates to woo more customers to take car loan.

We expect car loan to hit single digit or get below 10% mark with these rate cuts. The car industry through its own financial arms is giving special offers to woo customers this march. So go grab your car now.

RBI rate cut on 19th March and effect on Personal loans

We expect rates to remain same as the liquidity position will remain same .As Personal loan is unsecured loan the rates are in range of 14% to 38%.