Auto News Desk,RBI reduced the repo by 25 basis points. With this deficiency, the repo rate has come down from 6.50% to 6.25%. Following this decision of RBI, home loan, education loan, corporate loan, personal loan to car loan interest rate has been reduced for banks. This is the first time after about 5 years when it has been cut. Now if you are taking a loan on a new car, then you will get benefit in EMI.

Car loan will be cheaper
Will the car loan be reduced when the repo rate is low? They understand this in detail. All the banks in India get a loan from SBI. Now the rate at which the bank borrows from the RBI is called Repo Rate. The repo rate in which the bank gets borrowed, the bank gives a loan to the customer, due to which the interest rate increases. Because the bank earns it from this. The reduced repo rate after the new repo rate cut will also affect the EMI of the new car loan, due to which EMI will be cheaper.

How much will be saved on car loan
If you take a new car of Rs 10 lakh at the annual interest rate of 9% and the loan is for 7 years, then you will save about Rs 1524 every year.

Old EMI 16,089 rupees (at the rate of 9%)
New E EMI will be Rs 15,962 (at the rate of 8.75%)

There will be a savings of Rs 1524 every year and you will save up to Rs 10,668 in 7 years. If your credit score is good, then you can get a loan at a cheap rate on purchasing a car.