The RBI increased the Repo rate to 6.25%. Watch the video to know what it means for you.
In a much-anticipated move, the Reserve Bank of India (RBI), releasing its bimonthly monetary policy, increased the short-term lending rate or repo rate to 6.25% from the existing 6%. The main reasons behind the rate hike are rising oil prices and rise in inflation. Click here to read all about it.
Ideally, you should wait to see if your lender hikes interest rates. If your interest rates are hiked substantially, then you can consider a balance transfer to another lender. But if you are nearing the end of your loan, it is wise not to take any steps and simply maintain the loan until the end of its tenure to collect any useful tax deductions.
However, you will need to compare across lenders and check for the best rates. Don’t forget to look for lower processing fees and discounts for women borrowers. You can do that right now. The best offers are waiting for you!