Home And Consumer Loan. The new financial year has brought big news for the common people. Especially for those who took home and consumer loans at higher interest from NBFCs and micro finance companies during Kovid 19 in compulsion. They will have to pay less interest from the first quarter of the new fiscal 2021-22. This new rule will also apply to new customers. Also, those old customers who have taken home loans at floating rate will also benefit. In fact, the Reserve Bank of India has given great relief to such customers by issuing average base rate. Let us also tell you what the new interest rates have been kept by the RBI.
Average base reduction
A new average base rate has been released by RBI. This is the average base rate of five of the 5 major commercial banks in the country. The average base rate of these banks has come down by 0.15 per cent in the quarter ended 31 March 2021. Earlier this rate was 7.96 percent, which has now come down to 7.81 percent. The special thing is that in the last two years, the average base rate of five banks has come down by 1.40%. The same base rate was 9.21 percent as on 30 June 2019.
New Base Rate Released Every Quarter
The special thing is that this base rate is issued by the Reserve Bank every quarter. Which serve as the benchmark rate for NBFCs and MFIs. NBFCs and MFIs have higher interest rates. Special arrangements have been made by the Reserve Bank to control those. RBI issues an average base rate of 5 large commercial banks, which sets the benchmark rate for NBFCs and MFIs.