Auto sector likely to boost with RBI repo rate cut!

The Reserve Bank of India cut its policy interest rate by a quarter percentage point on Tuesday i.e. 1^st August’2017.  According to the policy there will be 0.25% cut in the repo rate in RBI’s third bi-monthly monetary policy review.

The repo rate is the key lending rate at which the central bank lends money to commercial banks and directly affects the interest rates of loans taken by consumers.

Amended new rates will have a direct effect on the interest rates which will now reach a 7 year low of 6%. After four policy reviews in which the repo rates remained unchanged, this new decision to reduce key lending rates came.

Public sector banks will pass on this benefit to consumers without any time lag. This is believed to be the lowest repo rate since December 2010. Roughly about 60-70% of new car buys are funded through loans while the balance is paid through cash.

The current interest rates on auto loans for new vehicles vary between 9.25 -11 % while for used vehicles they could be in the range of 12-15 % or even higher. The current interest rates on auto loans for new vehicles vary between 9.25 -11 % while for used vehicles they could be in the range of 12-15 % or even higher. A 0.25 % cut in repo rate would mean the interest rate would drop from 9.25 % to 9 %.

This will be a positive trend for the automotive sector be it new or used. So, why wait now acquire your dream vehicle from Shriram Automall’s used inventory. As by acquiring used you can take home the better model at low price without any trouble. With SAMIL you can also opt for finance through STFC at optimal prices.

Visit your nearby Automall today or click the link below for easy registration.

https://goo.gl/cpN3a5