In today’s Monetary Policy Meeting today, the Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) cuts the repo rate of 6% to 5.75%, in cutting by 25 bps while the reverse repo rate come down to 5.50% in cutting by 25 bps. With the reduced interest rates, now the commercial banks can get fund from RBI at a reduced interest rate. When the commercial banks have the benefit of lending in less interest rate, the consumers will automatically get benefited from this in the form of cheap loan and reduced EMI.
Now the home loans, car loans, and other sorts of loans will be cheap for Indian citizens. It will be quite a relief for the consumers since the banks will now afford the loans from RBI at reduced interest trades. It is clear that the people will get the benefits of affordable loans too.