Loans for home appliances shoot from 1% in 2020 to 37% in 2024: Survey
Masses are inclined towards purchase of consumer durables through loans, with the home appliances loans rising from just 1% in 2020 to 37% in 2024, a recent survey said.
State-run IDBI Bank has introduced a fresh home loan and auto loan service associated with the repo rate of the Reserve Bank of India (RBI). IDBI Bank has also introduced bulk deposits linked to the repo rate, or the central bank’s short-term lending rate for commercial banks.
The revised rates are applicable from September 10, 2019.
The interest rate on the new home loan and auto loan variant will be directly linked to the repo rate and thereby help in quick monetary transmission.
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Customers of the Bank will have the twin choices to either select the marginal cost of fund-based lending rate (MCLR) linked product or the freshly introduced repo rate-linked one. Banks are currently pricing credits on the basis of their MCLR.
Customers will now have the choice to pick either the MCLR-linked rate or the repo-linked rate. State-run bank Allahabad and National Bank of Punjab (PNB) have already connected their credit products to the repo rate.
The move comes days after Finance Minister Nirmala Sitharaman said that banks would launch loan products linked to the repo rate, or an external benchmark, which will lead to reduced EMIs for housing, vehicle and other retail loans.
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