Loans may become cheaper as RBI cuts repo rate for third time in a row

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Loans may become cheaper as RBI cuts repo rate for third time in a row

The Reserve Bank of India on Thursday reduced its repo rate — the rate at which it lends to banks — by 25 basis points (bps) to 5.75%. This is the third straight reduction in the rates in 2019. The move will likely bring down the loan EMIs. Earlier, RBI had reduced its repo rate from 6.5% to 6% in two stages this year. The weighted average marginal cost lending rate of banks has, however, risen from 10.38 per cent in January to 10.42 per cent in April 2019.

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