RBI has cut its key policy rate Repo Rate
RBI has cut its key policy rate Repo Rate by 0.25 basis points to 6.00% on 02nd Aug 2017, the lowest since November 2010. The cut in the Repo Rate means lower rate on Call / Notice money, which in turn means expectation of lower rate on the different loans given by Banks and NBFCs.
The loans may get cheaper as the MCLR from the Bank should go down following the reduction in the Repo Rates. However, the borrowers who have taken loans from NBFCs, should bargain for the better rate of interest on their Home Loans and Loan Against Properties.
MCLR rates on LAP and CC limits
Some of the private banks are offering interest rates at their MCLR rates on LAP and CC limits like 8.50% to 9.00%.
You may recommend your clients to save money by switching their loan to these Banks.
Home Loan @ 8.35% p.a.
Existing Home Loan borrowers with CIBIL score of more than 740 can transfer their Home Loan @ 8.35% p.a.
New Home Loan borrowers may also avail this interest rate.
Guidence for LAP/ WCDL
The clients whose CC limits are normally fully utilized, should be guided for LAP / WCDL to reduce rate of interest and avoid regular documentation (like stock stm) with Bank.
Guidence for LAP/ WCDL
The clients whose CC limits are normally fully utilized, should be guided for LAP / WCDL to reduce rate of interest and avoid regular documentation (like stock stm) with Bank.
Demonetization effects on Home Loan and LAP
After demonetization, interest rates have reduced on Home Loan & LAP.
You may suggest all Existing Home Loan & LAP borrowers to either request their existing Bankers to reduce Interest Rate or look for Switching their loan to other Banks for better rates.
LAP on Home Loan rates
You may get top up (LAP) on Home Loan @ home loan rates.
And all taxation and other benefits on total amount as if total loan is Home Loan.
Existing Home Loan Borrowers may avail this loan facility.
