Higher EMIs on Floating Rate Loans
Home loan customers on floating rate plans should be ready to pay higher equated monthly installments (EMIs) as there are signs that the rate of interest may hike again. Along with home loan customers, consumer durables, and buyers of cars also other large and small corporate borrowers can be in the category of paying higher rates.
As the rise in inflation along with measures taken by RBI’s joint venture to stable the value of rupee, through liquidity tightening measures. It pushed the rates, the highest in the last 15 months.
About a month ago, when RBI introduced its liquidity-tightening measures, the main motto was to increase the lending rates for short term curve. With the slow down of the economy, the lending rates for long-term rates may be increased.
The lending rates have been hiked by some lender rates including HDFC bank, one of the biggest private lenders along with some other private banks. However none of the pure players of housing finance took the step to raise the lending rates, but it would happen soon.
The major leading players in the loan market- SBI, Private, HDFC haven’t increased the lending rates, despite the guidelines by RBI. Also, requests for loans are dried up, and with this move, the lending sector will be in great loss. The PSU Banks may lend their personal loan interest rates to the base rate, to stabilize the economy.
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