Financial Loan Became Cheaper

After the cut off repo rate by RBI banks have decided today to lowered their loan rate. Specially government banks have participate now to lowered their loan rate. In this series home, auto and person loans rate will be lowered and financial process will be easy.

A meeting held by P. Chidambaram due to financial problem of India to lowered the loans rate by banks. It has been done by banks for getting some growth in Indian financial positions. The market is very slow due to over production however the money is not in market to purchase that. In this situation the share market is going down every day.

Today, some growth is in Indian share market but we have to see how many days it will get the growth of market. Indian financial managements are thinking that if the loans rate will be lowered then the market growth will be better.

According to OP Bhatt who is the chairman of SBI said on that meeting, “Our ALCO should be meeting on Wednesday and a decision to cut prime lending rate (PLR or the rate at which blue chip companies are lent money) would be taken after that.”

In this meeting MD Mallya who is the chairman and managing director of Bank of Baroda also said, “We will take a call on deposit as well as lending rates based on our ALCO report.” however, Punjab National Bank and Union bank of India has already reduced their PLRs.

The thinking behind the loans rate lowering are very clear. But the market moves naturally. The crisis comes again after some days because it is the only one way to reduce crisis. They can’t remove their crisis effectively to solve financial problem in the system.


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