RBI cuts Repo Rate by 25 bps: 3rd bi-monthly monetary policy, 2017-18
Here’s the New Updates after the update of Monetary Policy as on 02 August 2017. On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to:
| New Repo Rate | 6.00%, earlier it was 6.25% (.25% cut) |
| Reverse Repo Rate (LAF) | 5.75% |
| Marginal Standing Facility (MSF) | 6.25% |
Effects of Change in Repo Rate by RBI may lower the EMI for Home and car loans by .25% (Depends on bank if they pass the whole benefit to consumer).
Below are the example on how much you can save after .25% cut in interest rates on home loans:
| Loan amount | Interest Rate | Loan Tenure | EMI per month |
| 20 Lakh | 8.40% | 20 Year | 17230 |
| 20 Lakh | 8.15% | 20 Year | 16915 |
| Total Saving | .25% | – | Rs.315 |
|
Total Saving in 20 Years |
Rs.75234 |
Below are the example on how much you can save after .25% cut in interest rates on car loans:
| Loan amount | Interest Rate | Loan Tenure | EMI per month |
| 5 Lakh | 9.00% | 4 Year | 12442 |
| 5 Lakh | 8.75% | 4 Year | 12383 |
| Total Saving | .25% | – | Rs.59 |
| Total Saving in 20 Years | Rs.2845 |
