There is distress among home owners. Home Loan tenures have shot up rapidly in the last year. We enjoyed two years of rates as low as 6.40. But such has been the inflation that barely three quarters later, many borrowers are now paying upwards of 9 per cent. As a result, Home Loan tenures have shot up dramatically!
The latest buzz across the nation has been about two giant game-changers. One, the Digital India campaign and two, the plausible rate cut across small savings schemes. While the former has hit an ecstatic chord with the masses, the latter is perplexing people about what the possible repercussions of this move could be.
The Reserve Bank of India has cut the repo rate (the rate at which it lends to other banks) by 50 basis points, or 0.5%. In a move that caught many sections of investors by surprise, the Fourth Bimonthly Monetary Policy Review of the RBI reduced the repo rate to 6.75%, down from 7.25% earlier.… Read More »