NEWS & ADVICE : HOME LOANS
Wait for home loan borrowers a little longer, no immediate interest rate cut
By Joseph Samson
Mar 20, 2013
Print    Email    RSS   

Home loan borrowers would have to wait a little longer as the banks are not likely to pass the benefits of RBI's repo rate cut to borrowers this month.

Mr. S S Mudra, Chairman and Managing Director of Bank of Baroda said, "There is no reason to believe that easing will happen at a measured pace. We expect easing of deposit rates as we enter new fiscal year, and this happens, the transmission will take place".

However, borrowers need not be gloomy as there is rate cut in the offing, if not immediate. They can expect rate cut in the coming weeks. Mr. B A Prabhakar, Chairman and Managing Director of Andhra Bank said, "Since the deposit growth has been muted, interest rates on deposits too have remained high. Therefore, we expect the monetary transmission to take place only after two to three months".

And when the bank reduces the rates, the EMIs or the loan tenure would be shortened. The shortening of the loan tenure would mean lower interest burden on loans.


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
How to go about ‘Leveraged Investing’
This is how a bank lends money
Your EMIs may help you to reduce your tax...
Bank loans that could glitter for you
Financial Review: A must for every individual


PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive