RBI Cuts CRR Rates and Impact on Home loans | Personal loan | Car loans

17-09-2012: RBI News on CRR Rates – To go in line with Govt bold moves – RBI has announced a rate cut for Key cash reserve ratio from 4.75 to 4.5 %.

This will help liquidity flow into the banking system and that means credit will be more available to Indian companies who are stuck for cash.

This will mean Banks will have to park lesser money with Rbi and can use the money for lending etc.

RBI Rate cut & Impact on Loan Customers

Impact on Home loans –

We might see Banks and housing finance companies lower there rates for new customers as they will have cash to lend out to.

So wait for some special offers from Banks this month. For customers who have running home loans it will take some time for banks to understand the impact and reduce rate

Impact on Personal loan-

We don’t expect much rate changes with this policy and the top Banks have recently announced some special schemes for select companies for discounted rates. The leader HDFC Bank is offering 13.99 to select few companies employees this month. ICICI is also offering 14% for few select companies and ING Vysya has reduced to 14.5 % for select few.

Impact on Car Loans:

There has been fall in car sales and most car companies are pushing banks to reduce rates etc. With these rates – you can expect some special offers but many offers are already on for luxury cars where a % ROI is given by car companies and thus the rate is reduced for customers.

HDFC bank has these offers for Mercedes And Jaguar Cars.