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CBSE Class 12-commerce Answered

Bank reduce intrest rate on home lons
Asked by rsnitish7051singh | 20 May, 2020, 13:07: PM
answered-by-expert Expert Answer

A Repo Rate is the interest rate that the RBI charges commercial banks when they lend funds and is used by the monetary authorities to control inflation.

Whenever there is an increase in the Repo Rate, loans for the consumers become expensive because of the hike in the interest rates. Similarly, when the RBI reduces such Repo Rate, it expects the banks also to lower the interest rates charged on various loans. Because of such reduction in the interest rate, loans are offered to the consumers at a lower interest rate thereby decreasing the EMI on various loans.

Answered by Surabhi Gawade | 20 May, 2020, 14:56: PM

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Bank reduce intrest rate on home lons
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