InvestorQ : As reporate is unchanged what will be its effect on housing loan and FDs?
Praful Sarang made post

As reporate is unchanged what will be its effect on housing loan and FDs?

Answer
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Aditi Sharma answered.
7 months ago


Any change in the repo rate gives a direct impact on loans directly. If there is a cut in rate for example, Once RBI announced 50 bps cut. There was a significant fall in FD rates is senior citizens. Thus, if FD rates get lesser than other fixed-income banking investments, bank depositors consider small savings schemes like post office term deposits and Senior Citizens’ Saving Schemes than fixed deposits.

Repo rate your finances also home loan rates. If RBI cuts the repo rate , banks usually cut their interest rates and vice-versa. Thus, home-owners are always interested in RBI’s monetary policies as they seek to know whether their home loan interest rate will increase or decrease.