Quote from RupeePower on RBI Rate cut

Tejasvi Mohanram (Founder and CEO, RupeePower) believes, “The 0.25% rate cut by the RBI is obviously good news for borrowers, on both existing and new loans, and home loan borrowers with loans taken after Apr-2016 (MCLR-linked) will see rate reductions after the next reset in a few months, while base rate linked home loans should see a reduction in the next few weeks. However, what remains to be seen is whether the full rate reduction will get actually get transmitted into lending rates. Banks have, on an average, reduced base rates by only 50 bps since Jan-2015 while the RBI has eased repo rates by 150 bps in the interim.”
Speaking about RupeePower and how it affects his operations, he also added, “With the impending entry of competition in the form of payment banks and the related war for deposits, it is very likely banks will not pass on the full 25bp rate cut benefit to borrowers. Customers coming to therupeepower.com marketplace or our trusted partner bank sites could soon find lower interest rates across home loans, personal loans and auto loans. This is also a great time for customers to check refinancing (balance transfer) options on RupeePower, provided the prepayment penalties on their existing kind are manageable.”

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