InvestorQ : Did finance minister, Arun Jaitley declared home loan EMI would become cheaper than house rent?
Niti Shenoi made post

Did finance minister, Arun Jaitley declared home loan EMI would become cheaper than house rent?

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priya Shah answered.
2 years ago
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On 4th April 2019, the finance minister, Arun Jaitley declared BJP government's new goal towards economic growth. The goal is to lower the interest rate which will impact monthly installments (EMI) for home loans to go cheaper. This will cut down the house rent payment too.

This goal was made possible after the Reserve Bank of India (RBI) lowered policy rates for the second time in two months. Jaitley said, to wait for the final decision, as Banks will review their Marginal Cost of funds based Lending Rate, or MCLR, the floor at which they extend loans, every month.

The most Indian banks were eagerly waiting for RBI’s rate cut and Governor Shaktikanta Das with his Monetary Policy Committee (MPC) has reduced the repo rate to 25 bps (One basis point is one-hundredth of a percentage point). The repo rate now after the rate cut is at 6%. This move is aimed to increase the growth of the Indian economy. Repo rate is the rate at which the RBI lends money to commercial banks.

The declaration of such a goal has raised many hopes to get a boost to the Indian economy through higher consumption and investments.
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