State Bank of India (SBI) is preparing to give its customers very good news. Actually, SBI can soon offer repo rate based home loans to existing customers. According to the Economics Times news, SBI Chairman Rajnish Kumar has indicated this. According to the news, Rajneesh Kumar told, We are thinking about benefiting the existing customers also.
RBI had decided to cut the repo rate by 35 basis points. This is the fourth consecutive time the RBI has cut the repo rate. Currently the repo rate has reached 5.40 percent.
What is Repo rate?
Repo rate is the rate at which RBI lends to banks. Banks give loans to customers with this loan. The low repo rate means that many types of loans from the bank will become cheap.