Black Friday Sale is here!

Up to

60%

off in software solutions and tools for a very limited time. Hurry up!

off in software solutions. Hurry up!

Latest

Stories

RBI Slashes Repo Rate, Allows 3-month Moratorium on EMIs to Curb Covid-19 crisis

Tidio Live Chat Software - Add Tidio live chat software to your website in minutes. Contact visitors and turn them into happy customers. Enhance their experience and boost your sales. Get it for Free

Must Read

In its Monetary Policy Committee (MPC) meeting held on Friday, 27th March, RBI agreed for a huge reduction in repo rate in a bid to mitigate economic risks induced to the Covid-19 pandemic.

As reported by India Today: ” The RBI’s MPC has voted in favor of an interest rate cut to the tune of 75 basis points, which brings the repo rate down to 4.4 percent from 5.15 percent. The reverse repo rate has also been reduced by 90 basis points to 4 percent in a bid to maintain financial stability and revive growth. “

In addition to this, RBI also announced that banks could allow a three-month moratorium for payment of EMIs on all term loans that were outstanding on March 1. So the customer can now pay the outstanding EMI after three months. Thus, the payment of EMI is on hold.

Also Read

However, in the case of the moratorium, the final decision remains in the hand of the banks. Also, the industry experts reassured that the non-payment of EMI will not impact the credit score.

RBI made the above announcements with an intention to help the people grappling with economic uncertainty. Many people have been affected by the 3-week lockdown to curb the spread of novel coronavirus.

Elegant Themes - The most popular WordPress theme in the world and the ultimate WordPress Page Builder. Get a 30-day money-back guarantee. Get it for Free

Financial experts analyzed what could be the impact of slash in repo rate. According to their analysis, interest rates for term loans are expected to lower. Home loans are also expected to get cheaper with the reduction of repo rate.

Even the rates for personal loans and consumer good loans are expected to drop. RBI has made this move so that the low rates can accelerate demand and maintain the consumption cycle.

The RBI has also brought down banks’ Cash Reserve Ratio (CRR) from 4 percent to 3 percent. This means the banks will have more money to lend now.

Apart from the above reductions in key rates, RBI also announced various liquidity measures related to MLCR and TLTRO to ease the increasing pressure.

For the borrowers two things need to be noted:

EMIs linked to repo-linked lending rate (RLLR) will witness faster changes. In comparison, EMIs linked to MCLR will have to wait for their reset period. In their case, either the EMIs will decrease or the loan tenure will be reduced.

The RBI governor has vowed that the RBI will provide all the necessary help for the economy to get through this period of crisis.

Save up to 60% on OptinMonster

Stay updated

Subscribe to our newsletter and never miss an update on the latest tech, gaming, startup, how to guide, deals and more.

- Advertisement -
- Advertisement -

Latest

Grow Your Business

Place your brand in front of tech-savvy audience. Partner with us to build brand awareness, increase website traffic, generate qualified leads, and grow your business.

- Advertisement -

Grow Your Business

Get these business solutions, tools and services to help your business grow.
Elementor

Elementor -Join 5,000,000+ Professionals Who Build Better Sites With Elementor. Build your website with 100% visual design that loads faster and speeds up the process of building them.

WP Rocket

WP Rocket - Speed up your website with the most powerful caching plugin in the world. The website speed increase means better SEO ranking, user experience, and conversation. It’s a fact that Google loves a fast site.

Kinsta

Kinsta - If you are looking for WordPress managed hosting, Kinsta is in the leading front. Kinsta provides WordPress hosting for a small or large business that helps take care of all your needs regarding your website with cutting-edge technology.

OptinMonster

OptinMonster - Instantly boost leads and grow revenue with the #1 most powerful conversion optimization toolkit in the world. 700,000+ websites are using OptinMonster to turn their traffic into leads, subscribers, and sales.

Related

- Advertisement -
- Advertisement -