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Home and Auto Loan Interest rates Going Down

It’s definitely good news for people who have car loan and home loans since the rate of payment is to come down. This is due to the action done by Reserve Bank of India where it slashed cash reserve ratio by 25 basis point to 4.50 %. For the knowledge of everyone, the CRR is the minimum proportion of deposits that banks must hold with the central bank.

This reduction planned by the Reserve Bank of India is expected to provide Rs 17,000 crore liquidity into the banking system. The main goal of this is to maintain smooth flow of credit to productive sectors in the economy. If this will not be done, surely everything in the economy would be affected.

There will definitely be a tight liquidity expected in the next few weeks that will be due to the upcoming festive season. When this is done successfully, there will be a lot of people who will have banking and business confidence.


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