Impact of demonetization on Home loan

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Impact of demonetization on Home loan It's been
nearly two years that demonetization had hit the
nation. Well then it was hit, and now with the
economy gradually garnering lost pieces is trying
to stand on its own two feet. With real estate
business being a large part of the economy it
has been affected largely. This change is a
pleasant one for the consumers as this marks a
fall in the interest rates on home loans. Home
Loan in Delhi or Mumbai, everywhere the lower
interest rates is observed due to
demonetization. Many banks have reduced interest
rates. Although RBI Governor did not change the
repo rate due to the fear of inflation. This
decision of the RBI has adversely affected the
banks, but the consumers seem to be happy. The
banks are controlled by the government and hence,
the change has this impact on them due to
changes in the fiscal policies. Much unlike
Personal Loan in Delhi, this loan has dropped
rates. This indicates happiness for consumers
but at the same time a low in the economy of the
country. MCLR determines Home loan As compared
to the earlier situation when the home loan
determiners were the RBI and the basic rate
floated by them, now it is going to be MCLR. This
is done to provide some relief of interest to
the consumers who wish to take home loans. Not
just in Mumbai, but also Home Loan in Delhi will
now be affected by the MCLR. Even for the
nonfinancial institutions, MCLR will determine
the rate of interest. Customers can Leverage the
interest rates With all changes made to the
currency, the unchanged repo rate has
disappointed the banks. The banks seem to have
enjoyed the high rate of interest for a long time
and now this is ceased. Now the borrowers are
enjoying the interest rates and making the most
of the demonetization in the country. However,
this situation does not change in the case of
Personal Loan in Delhi as there is no collateral
and the rate of interest needs to be high in that
case. Overall all, the banks seem to be at the
receiving end due to this extensive and deep
thought move of the Indian Government. The
changes in the fiscal policy have somehow given
the benefit of a lower rate of interest in case
they wish to opt for a home loan.