Impact of demonetization on Home loan
by Finway FSC Empowering People FinanciallyIt's been nearly two years that demonetization had hit the
nation. Well then it was hit, and now with the economy gradually garnering lost
pieces is trying to stand on its own two feet. With real estate business
being a large part of the economy it has been affected largely. This change is
a pleasant one for the consumers as this marks a fall in the interest rates on
home loans. Home Loan in Delhi
or Mumbai, everywhere the lower interest rates is observed due to
demonetization.
Many banks have reduced interest rates. Although RBI Governor
did not change the repo rate due to the fear of inflation. This decision of the
RBI has adversely affected the banks, but the consumers seem to be happy. The
banks are controlled by the government and hence, the change has this impact on
them due to changes in the fiscal policies. Much unlike Personal Loan in Delhi, this loan has dropped rates. This indicates happiness for
consumers but at the same time a low in the economy of the country.
MCLR determines Home
loan: As compared to the earlier situation
when the home loan determiners were the RBI and the basic rate floated by them,
now it is going to be MCLR. This is done to provide some relief of interest to
the consumers who wish to take home loans. Not just in Mumbai, but also Home Loan in Delhi will now be affected
by the MCLR. Even for the nonfinancial institutions, MCLR will determine the
rate of interest.
Customers can Leverage
the interest rates: With all changes made
to the currency, the unchanged repo rate has disappointed the banks. The banks
seem to have enjoyed the high rate of interest for a long time and now this is
ceased. Now the borrowers are enjoying the interest rates and making the most
of the demonetization in the country. However, this situation does not change
in the case of Personal Loan in Delhi
as there is no collateral and the rate of interest needs to be high in that
case.
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Created on Oct 11th 2019 04:10. Viewed 506 times.