The Reserve Bank of India (RBI) 's Monetary Policy Committee (MPC) has cut the repo rate by 0.25 percent to boost the country's economy. All 6 members involved in the Monetary Policy Committee voted in support of it. Earlier, the repo rate was 6 percent, now reduced to 5.75 percent. In such a decision of Reserve Bank of India, car loan (CarLoan) may be cheaper. That means if you're thinking of buying a new car, it can be good news for you. Let us know the whole news in detail

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After the repo rate cut, it is expected that the car's loan could be cheaper. However, it is entirely up to the banks to give the customers the benefit they want. In fact, the banks will get cheaper funding from the RBI as the repo rate decreases. This will allow the bank to give the car at a lower rate of interest. This will lead to a cheaper new loan. The repo rate is the rate at which the RBI gives loans or funding to commercial banks. The loans taken before the repo rate cut can also be cut in EMI. In addition, the repayment period may also benefit customers in the deduction. However, it is up to the bank's side to discount the number of discounts that customers offer.

For your information, the old interest rate was 9.40%, but after a 0.23% cut, it has now gone up to 9.15%. If the banks also cut interest rates by 0.25%, the 5-year EMI on a car of 3 lakh so far was Rs 6,286, but it will now go up to Rs 6,249. That means customers will have a profit of Rs 37. If a car of Rs 10 lakh is purchased on a 5-year EMI, customers will have to pay Rs 20,831 instead of Rs 20,953. I.e. customers will have a profit of Rs 122. The reduction in the repo rate does not necessarily benefit the customers as well. In fact, it depends on whether the banks give the RBI's decision to benefit the customers. This is also necessary. Because the customers did not get the benefit of the last cut made twice. But this time the cut is expected to benefit.

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