Wednesday, July 27, 2011

RBI Rate Hike to Hit Home Loans and Car Loans

Reserve Bank of India hiked the Repo rate by 0.50% points to tame inflation for the 11th time in last 16 months. The bank loans will cost more for the customers. Prices will remain high at least for near term.

Yes Bank raised their base rate or minimum lending rate by 0.50% points. Other banks will follow the same in upcoming days. The home loan rates are going to be up from 10% to 10.50%. Borrowers will face more problems in paying their instalments after the rate hike.