RBI reduces repo rate, but EMI may take three months to come down

abstract RBI has reduced the repo rate from 4.40 per cent to four per cent.  The reverse repo rate has come down from 3.75 per cent to ...


  • RBI has reduced the repo rate from 4.40 per cent to four per cent. 
  • The reverse repo rate has come down from 3.75 per cent to 3.35. 
  • Older customers will get its benefit from at least three months later. 


The Reserve Bank of India (RBI) has made a big announcement for the common people. According to the decision taken in the review meeting of RBI's Monetary Policy Committee (MPC), the repo rate has been reduced from 4.40 per cent to four per cent. That is, it has been cut by 40 basis points. Most of the members in the meeting were in favor of reducing the repo rate. But you know whether you will get the benefit of the reduction in the repo rate or not.  You will benefit like this, if the banks bring the benefit of cutting the repo rate to you, then the common people will benefit greatly. This is because now there will be pressure on banks to cut interest rates. With this, people will get loans cheaply. Apart from this, EMI for home, auto or other types of loans taken at floating rate will also be reduced.  Also read:  Three-month additional deferment on EMI payments, reduction in repo rate

Reduction in
reverse repo rate In addition to the repo rate, the reverse repo rate has also been cut. The reverse repo rate under the new monetary policy has come down from 3.75 per cent to 3.35. The six-member MPC meeting was chaired by RBI Governor Shaktikanta Das. RBI Governor Shaktikanta Das said that the MPC meeting was to be held from June 3 to 5. But it has already been done. This was done during 20 to 22 May.  If the

banks will be so low , if the benefits of this are passed on to the people, then the EMI of a home loan of Rs 30 lakh for a period of 20 years will be reduced by Rs 724. First, if the average rate of your loan is 7.35 per cent and EMI is Rs 23,893, then the new average rate will be 6.95 per cent and EMI will be reduced to Rs 23,169. In this way, EMI will save Rs 724.

It may take up to three months for EMI to decrease
It is known that after the introduction of the new system of interest rates by the RBI, new customers will start seeing its effect on the loan. But the old customers will get its benefit from at least three months later. This is because it can be converted into repo rate only after the reset period of the old loan is over.

Three types of benchmark rates
Banks currently have three types of external benchmark rates, according to which interest rates are decided. The method of deciding the benchmark based interest rate is not very transparent. Banks used to fix the interest rate of the loan according to the benchmark rate. But due to varying bank benchmark rates, the interest rate of loans used to vary greatly. Each bank had its own benchmark rate. 



Adithya Varma,1,advanced insurance plans,1,afcat 2019,1,agriculture insurance,1,airtel,1,alagappa university result Alagappa University,1,Anna univeristy,3,anna univeristy news,2,anna univeristy results,2,Anna univeristy transcripts,1,anna university,5,anna university student login,1,Antariksham 9000 kmph,1,appario retail private ltd,1,Atal Bhujal Yojana,1,auto,4,bank holidays,1,bank loans,1,Banking,12,bigg boss kannada,1,budget,1,business,41,car insurance documents,1,car theft insurance,1,cbse exam result date,1,china,1,choosing health insurance,1,coronavirus,1,cyber defense insurance,1,cyclone,1,Dhillukku dhuddu 2,1,education,30,entertainment,4,Entrepreneurship,1,facebook,1,farmers got cheated,1,February 8,1,financial plans,1,financial support,1,Getmyuni,1,global health insurance,1,gmail,1,google,1,google cloud vps,1,government farmers insurance,1,government insurance loss,1,government jobs,1,Group D result,1,gtu,1,hall ticket,1,Happy Diwali Naraka Chaturdashi Images,1,health,23,health insurance,2,Health insurance certified plans,1,Health insurance floater plan,1,health insurance online,1,health insurance payment,1,health insurance schemes,1,Himansh Verma,1,honda amaze,1,hot dance video,1,HSSC Recruitment 2020,1,https://www.nabard.org/careers-notices.aspx,1,idea,1,idra,1,insurance,4,insurance advice,1,insurance clams,1,Insurance Companies Cheated,1,insurance loss,1,insurance news,3,insurance premium,1,insurance safety,1,irda insurance,2,isro recruitmnet,1,JIPMER 2019 registration,1,jobs,4,kgf,1,kgf movie rating,1,kisan samman nidhi,1,last date,1,lic insurance,1,life insurance,1,maari 2,1,Madhyamik Result,1,Maha Shivratri,1,mari 2,1,mobile insurance,1,movie review,1,movie reviews,4,msbte exam form,1,msbte project competation 2020,1,msbte result,1,Navratri Diet,1,new health insurance,1,New insurance policy,1,New rules,1,NEWS,199,nnc,22,nnc1,8,nnc2,6,nokia 9,1,Om prakash singlaFraud caseonline cheatinginsurance fraud,1,oppo k1,1,Padi Padi Leche Manasu,1,panga movie review,1,panga movie wiki,1,phethai,1,Photos,1,pm kisan,1,pm kisan samman nidhi,1,pm kisan samman nidhi portal,1,pm kishan,1,pmkisan. gov. in,1,pmkisan.gov.in,1,pmkishan,1,pongal,4,premium insurance loss,1,promotion,1,Propose Day,1,railway group d result,1,railway group d result 2019,1,review,1,RRB Group D,1,RRB Group D Result,1,RRB Group D Result 2018,1,rrb group d result 2019,1,RRB Result,1,Sarileru Neekevvaru,1,sbi,1,sci-tech,10,Shaunak Chakraborty,1,Sonu Nigam,1,spicejet free tickets,1,sports,31,ssc je,1,Status Quotes Online,1,stock market,1,stockmarket,1,student travel insurance,1,TATA Motors,1,tax news,1,tech,11,technology,9,travel insurance,1,vodaphone,1,Weather in Delhi,1,wedding ceremony insurance,1,West Bengal Police constable recruitment,1,What The Love,1,whatsapp,1,WhatsApp wishes,1,www.pmkisan.gov.in,1,
Today's Latest news, Know What's happening in India- with Timesnowindia.com: RBI reduces repo rate, but EMI may take three months to come down
RBI reduces repo rate, but EMI may take three months to come down
Today's Latest news, Know What's happening in India- with Timesnowindia.com
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy