RBI's big gift to EMI holders, know how much the interest will be reduced

Breaking News, Digital Desk- (EMI) If you are thinking of taking a loan for home or car, then this is good news for you. Reserve Bank of India (RBI) is considering making a big cut in the repo rate. 

In the three Monetary Policy Committee (MPC) meetings to be held from June to Diwali this year, the repo rate may be reduced by 0.50 to 0.75 percent. If this happens, then it can provide a lot of relief to the common man on loans.

Common man will get relief!

According to media reports, the next meeting of the RBI's Monetary Policy Committee will be held on June 4-6, in which the repo rate may be cut by 0.25% to provide relief to the common man. 

After this, further cuts of 0.25% to 0.50% are expected in the meetings to be held in August or September-October. RBI has started cutting the repo rate since February, bringing it down to 6% now. In total, a cut of 0.50% has been made in two meetings.

How much will the interest decrease-

It is being claimed that before Diwali, the common man will get a big relief and RBI Repo Rate can be reduced by up to 0.75%. At present, the repo rate is at 6%, by Diwali it can come down to 5.25%.

Home and car loans will become cheaper!

In simple terms, repo rate is the interest rate at which RBI gives loans to banks and then banks give loans to customers by adding some more interest. 

In such a situation, if there is a cut in the repo rate, then the EMI of your loan will also be reduced and your home loan and car loan will be cheaper.

What is the reason behind the reduction in interest rate?

According to a report, all factors are pointing towards a rate cut. Monsoon is expected to be normal. GDP growth is good and remains stable. Inflation is under control, due to which rates may decrease further.