Car, personal, & home loan interest may increase..!?

Sowmiya Sriram
Car, personal, & home loan interest may increase..!?
As expected, the Reserve bank has increased the repo rate by 0.35% from 5.9% to 6.25%. The decision of the Reserve bank is expected to increase the interest rate for personal loans and car loans. If the interest rate increases, it is expected that the interest rate for loans will increase. It increased the rate by 35 basis points to 6.25%. This is expected to increase the monthly installment. Henceforth, your monthly installments may increase further.
This decision by RBI is seen as a step to bring inflation under control. This interest rate hike has been done amid concerns about inflation globally. While the interest rate has been on the rise since last April, it increased by 50 basis points to 5.9% in September. Fixed Deposit Schemes, which are still seen as one of the most important schemes among Indians, are still regarded as fixed-income schemes. Due to this investors will get more returns.
While the interest rate has already been increased several times, some banks have increased the interest rate on deposit funds. It is expected to increase again.
Demand for loans is expected to increase ahead of christmas and New Year. But the rate is expected to increase during this period. So this may have an impact on credit demand. However, it may lead to higher interest rates for new borrowers, especially car loans, home loans, and personal loans.
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