RBI Repo Rate cut impact! Will EMIs come down; will deferment help? Know it all here!
The Reserve Bank of India’s (RBI) decision to slash Repo Rate by 40 bps and extend the loan repayment moratorium by another three months is a “positive” step, National Real Estate Development Council (NARDECO) President Niranjan Hiranandani told Zee Business
The Reserve Bank of India’s (RBI) decision to slash Repo Rate by 40 bps and extend the loan repayment moratorium by another three months is a “positive” step, National Real Estate Development Council (NARDECO) President Niranjan Hiranandani told Zee Business. This is the third intervention by the banking regulator since the Covid 19 outbreak.
The move will reduce the interest cost of the EMIs, he said. This will be helpful to the people who take loans for buying homes or other purposes.
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The RBI has also reduced the Reverse Repo Rate which augurs well he said. This will incentivise banks to give loans to the private sector or MSME. He however suggested that the regulator could have done better by reducing the Reverse Repo Rate, even further. It should be brought to 3 per cent, he said.
He also suggested that the RBI is giving reliefs in small installments, instead it should do a onetime “rollover”.
Another guest on the panel Ramesh Singh, Former Executive Director (ED) at Dena Bank also welcomed the decision saying that the rate of interest rates will come down.
Feroze Azeez, Deputy CEO at Anand Rathi Securities said that the people should use the moratorium as the situation around jobs is uncertain. He said that people who can pay the loans should temporarily put the repayment on hold and instead put the money in emergency fund.
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Though, the interest will not be waived off as this is just a deferment, delaying payment now could be a wise move, he said. It is better to pay some extra money in interest in circumstances prevailing currently.
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