The RBI cut the repo rate by 25 basis points on Wednesday to 6%. This is the rate at which RBI lends to banks. The repo rate has been cut to a six and a half year low. Now, RBI has asked banks to cut interest rates on loans. The festive season is round the corner. Eid, Ganesh Chaturthi and Dussehera fall in the next two months.
If you are looking to avail a home loan or a car loan, this might just be the opportunity you are looking for. Banks and lenders are getting ready for the festival season. Banks would come up with festive season offers on loan rates in the months to follow. Home loan and car loan rates will fall. This festival season could be a Bonanza for you.
So should you avail a loan this festive season? Let's find out. Want to know more on loans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.
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1. Time to buy your first home this festive season
The RBI has cut repo rates to 6% and banks are getting ready to offer home loans at cheaper rates to new borrowers. Just short listed your dream home? This festive season is the time to avail a home loan and buy that dream home. But, you are not the only one waiting for the festive season. The real estate industry suffered a slow down after demonetization. Now, builders and developers are getting ready to lure you with tempting offers freebies and discounts to dump their unsold apartments.
You can get your dream home at a discount and if you are availing a home loan to make the purchase, expect lower interest rates from banks this festive season. After demonetization, you and other citizens deposited Rs 500 and Rs 1000 notes at banks and post offices. Banks are flush with all this cash. Now, banks can afford to reduce interest rates offered on deposits.
Why SBI, India's largest lender, cut interest rates on savings bank deposits from 4% a year to 3.5% a year, for deposits up to a crore. If banks are offering lower interest rates on SB deposits, it is a matter of time before interest rates are cut on home loans.
Isn't this the right time to buy that dream home?
You and other citizens love SUVs and this love is only growing stronger. An SUV Craze is sweeping over the country. All major auto manufacturers are launching SUVs to tap into this craze. Today, one in every 4 cars sold in India is an SUV. So why do you and other citizens love SUVs? SUVs have high ground clearance which makes them easy to drive on roads filled with potholes. SUVs can easily accommodate large families and are very good for long distance drives. They are also very fast and give decent mileage.
So is this festive season a good time to avail a car loan and buy your dream SUV? After the repo rate cut, you can expect banks to offer car loans at lower interest rates, especially during the festival season. Companies and dealers are building stocks ahead of the festive seasons, licking their lips in anticipation of bumper sales.
This monsoon has also been good and citizens in rural areas are getting ready to purchase cars and SUVs. Expect a flood of discounts and offers this festive season as you get ready to purchase your dream SUV. Demonetization has changed the way, you purchase a car. A dealer cannot be paid more than INR 2 Lakhs in cash, when you purchase a car. So, you and other citizens can avail car loans this festive season, making use of the lower interest rates offered by banks and auto financing companies.
Gift yourself a dream home or car this festive season and make it a memorable one, you will never forget. Demonetization has given you a brilliant opportunity to get your dream home at a cheaper price and with banks cutting home loan rates, things could not be better.
Be Wise, Get Rich.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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