Real estate sector welcomed the reduction in repo rate, said – business will increase due to decrease in interest
New Delhi. The Reserve Bank of India (RBI) has offered to cut the repo rate for the fourth consecutive time. After the third bi-monthly monetary policy committee meeting of the current financial year, the RBI has announced a reduction in the repo rate by 35 basis points. Apart from this, the reverse repo rate has also been reduced by .35 basis points. This initiative of RBI has been welcomed by all sectors of business including real estate. Businessmen associated with the real estate sector say that banks to benefit the common man by cutting the repo rate Should also cut interest rates. If this happens, people will get loans at a cheaper rate and this sector will definitely grow.
Repo rate came at the lowest level: Dinesh Jain
Dinesh Jain, MD, Exotica Housing, says the repo rate has fallen to an all-time low of 5.40% after a decrease of 35 basis points. This will directly affect the borrowers’ pockets and they will benefit. The benefit of this deduction should reach the customers without delay, whether it is a home buyer or someone else. Suresh Garg, CMD of Nirala World, says that this time, after cutting 50 basis points for the last 2 times, this time there was little hope. Reduced repo rate by 35 basis points Banks will get loans at a lower rate, so that banks will also be able to give loans to people at a lower rate. This will reduce the installment of each type of loan, which will be applicable to both new and old borrowers. People will be able to repay the bank loan before the scheduled time. Gayatri Group director Hari Om Dixit says that the repo rate of 5.40% is unprecedented, which was sometimes between 7-6. This is the fourth consecutive time the RBI has reduced the repo rate. The first 25 basis points have been cut three times. Now the next responsibility of the bank is the interest rates Reduce the benefits to the borrowers.
SBI reduced loan rates
The country’s largest lender State Bank of India (SBI) on Wednesday cut benchmark lending rates by 15 bps (basis points). SBI’s one-year marginal cost of fund-based interest rates (MCLR) will come down from 8.40 per cent to 8.25 per cent from August 10. SBI said that SBI is going to give the entire benefit of 85 bps in the repo rate in the current financial year (2020) by the RBI to its cash credit and overdraft consumers above the limit of 1,00,000.