Home-Loan-1024x576The Reserve Bank of India (RBI) has announced the first bi-monthly loan policy review for the financial year 2022-23, with no change in interest rates. The RBI governor said that the repo rate has been kept at 4 percent, which means that in view of rising inflation, the possibility of increasing interest rates has been stopped for the time being. The EMI of those taking loan from the bank will no longer be expensive and those who are thinking of taking a home loan or tax loan will continue to get the benefit of cheap loans for the time being.

loan will be cheaper now

Property developers are increasing house prices, automobile companies can increase car prices, educational institutions can charge tuition fees, but RBI’s decision not to change interest rates on home loan, car loan or education loan will not cost dearly. Going to do.

Rising inflation has made it a matter of concern

However, now questions are being raised as to how long this situation will continue. This is because RBI Governor Shaktikanta Das, while announcing the monetary policy, has projected inflation for 2022-23 at 5.7 per cent, up from 4.5 per cent in 2021-22. However, the current rate of retail inflation is much higher than the RBI’s estimate of 6 per cent. The rise in commodity prices is likely to increase inflation.

Loans may become expensive in the coming days

The RBI governor has made it clear that now the priority of the central bank is to rein in inflation. This means that in view of rising inflation, RBI can make loans more expensive in the coming days. It is believed that when the RBI announces its next credit policy, interest rates will change and loans can also become expensive. This is also indicated by the fact that banks are continuously raising interest rates not on loans but on deposits. But raising interest rates on savings means that loans will also become costlier in the coming days.