Interest rates eased again: RBI slashes repo rate by 25 basis points

KOCHI: RBI reduced the repo rate by 25 basis points. The new rate is 5.25 per cent. Banks will reduce interest rates on housing, auto, personal, gold and corporate loans. The key interest rate has been reduced by 1.25 per cent for the fourth time this year.

After the monetary policy meeting, Reserve Bank Governor Sanjay Malhotra said that the interest rate can be reduced further by assessing inflation. The decision was taken considering that inflation fell to 0.25 per cent in October and GDP grew by 8.2 per cent in July-September. An additional amount of $ 16 billion will be made available in the market to improve domestic consumption.

Profit on Home Loan over 20 years

Loan Amount: EMI at 8%: EMI at 7.75%: Profit per annum: Profit per annum of 1.25% reduction

30 lakhs: Rs. 25,093: Rs. 24,628: Rs. 5,580: Rs. 22,776

50 lakhs: Rs. 41,822: Rs. 41,047: Rs. 9,300: Rs. 47,268

75 lakhs: Rs. 62,733: Rs. 61,571: Rs. 13,944: Rs. 72,000

Profit on Vehicle Loans

Loan Amount: EMI at 8.75%: EMI at 8.5%: Profit

5 lakhs: Rs. 10,318: Rs 10,258: Rs 720

Rs 10 lakh: Rs 20,637: Rs 20,516: Rs 1,452

Rs 15 lakh: Rs 30,955: Rs 30,774: Rs 2,172