RBI Hike Repo Rate: Due to RBI’s decision, loan becomes expensive, EMI burden will increase
Business
oi-Bavita Jha
New Delhi. The Reserve Bank of India today suddenly announced a hike in the repo rate. RBI Governor Shaktikanta Das surprised everyone by deciding to increase the repo rate by 40 basis points in a press conference. This decision of RBI is going to affect the general public. After the decision of RBI, now the repo rate has been reduced to 4.40 percent. With this announcement, the RBI Governor said that in view of the risk and increasing volatility in the modalities and financial markets, it has been decided to increase the repo rate. After the increase in the repo rate, now you will have to face inflation in taking loans, then the EMI burden will also increase.
RBI Governor Shaktikant Das: Repo rate hiked, EMI will be expensive. oneindia hindi
loan will be expensive
RBI has increased the repo rate by 0.4 percent. Repo rate means the interest rate at which the central bank provides loans to banks. That is, now banks will get loans at the rate of 4.40 percent. With the increase in the repo rate, the way has been cleared for the banks to increase the interest rate on the loan. If banks will get loans at an expensive rate, then it is natural that they will also provide loans to the customers with increased rates, that is, now the era of cheap loans is over.
EMI burden will increase
As the loan becomes expensive, the EMI burden will also increase. After the changes in the interest rates by the banks, your loan will be expensive that along with it the burden of EMI will also increase on you. RBI has also decided to increase the CRR by 0.50 percent. It has now been reduced to 4.5%. Let us tell you that the Reserve Bank of India did not make any changes in the repo for the 11th consecutive time. For a long time it was maintained at a low of 4 percent
