How repo rate affects home loan
thanks for your guidance on home loan and repo rate. The purpose to visit this site is I wanted to know, “how repo rate impact my home loan?” Just wanted morr guidance from you. I have taken home loan from LICHFL 2 years ago on 10.25% interest rate. Will this repo rate fluctuations impact my home loan or not. Well, in most cases, you can take out a loan at a fixed interest rate or a prime-linked rate. If you chose a fixed rate, you will experience no impact if the repo rate changes. But, if you have a prime-linked loan, you need to pay attention to changes in the repo rate. Here’s how the repo rates may affect you in the short and long term. However, it is important to note that repo rate cut would lead to a reduction in the rate of interest only if the loan has been offered on a floating interest rate basis. If the personal loan has been offered on a fixed interest rate basis, then the interest rates would not be affected by any changes in the repo rate.