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RBI cuts repo rate by 0.25%

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RBI cuts repo rate by 0.25%

Last updated: February 2 2013
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  • RBI cuts repo rate by 0.25%

    News:
    RBI cuts repo rate by 0.25 per cent, loans may get cheaper - NDTVProfit.com

    What does this mean to Chennai RE situations ?
  • #2

    #2

    Re : RBI cuts repo rate by 0.25%

    In a short term might help builders and promoters to get access to more liquidity and this might ease their monetary situation and dont see much for the buyers. If this is going to be the future trend of RBI, RE sector will be rosy for some more time before hitting a hard slowdown. All they will be doing is to delay the inevitable. In my opinion if the Rate cut trend starts after the Real estate Regulatory bill have been passed in the Parliament, it would have been more beneficial for the buyers.

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    • #3

      #3

      Re : RBI cuts repo rate by 0.25%

      With every big politician involved as silent partners in most of the biggest RE companies, I seriously don't understand how the buyers hope that something good might happen for us. Also the Mumbai biggies will hardly allow anything to happen!

      Simply put, I guess such bills tend to miss out the real concerns that buyers face for eg: Delay in project etc and tend to speak in detail about some not no much important topics.

      Also the bill be wantonly made with lot of loopholes to save the builders from getting fined.

      All this pre EMI stuff , exorbitant pricing than the average cost prevailing in the area, unregulated price hikes every month, non-transperancy of the Flats Sold V/s Flats unavailable, exorbitant pricing of Land deals by individuals, plethora of Taxes levied during purchase of flats, Correct Property valuation guidelines for old flats, Lung space in buildings, rebates for providing plantation inside buildings, efforts to save ground water , should all be vital talking points.

      Most importantly A buyer should have clear list of their legal rights defined out !

      The builder-agent-bank nexus is killing the buyer left and right! Banks should also be pulled into legal framework for funding illegal projects and providing fund for buying such properties!

      I may have missed many points, and am sure none of this would feature in RE bill.
      Last edited January 29 2013, 02:57 PM.

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      • #4

        #4

        Re : RBI cuts repo rate by 0.25%

        My EMI has not reduced because of this yet!!! This is an usual trap by builder-government nexus....they create demand by restricting supply then ease loan amount with cheaper loan amounts for few months and the moment unsold stocks are cleared, Banks start charging you with high interest rates after you commit then 30-40 Lakhs for 15 years...they will milk you for years!!! Hope buyers get smart and stay away from RE unless they have hard-cash

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        • #5

          #5

          Re : RBI cuts repo rate by 0.25%

          Punjab National Bank cuts lending rate by 0.25% with effect from February 9 - Economic Times

          Union Bank, PNB cut base rates by 25 bps; OBC ups deposit rates - NDTVProfit.com

          At least some of these guys have started showing it...It will take a month for others to follow I think (like ICICI, etc..)

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          • #6

            #6

            Re : RBI cuts repo rate by 0.25%

            Has HDFC cut its floating rate? I am not finding any news so far..

            Always thought that these rate cuts dont really help the end users !!

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            • #7

              #7

              Re : RBI cuts repo rate by 0.25%

              SBI reduced base rate by a whopping 5 points. Their advantage of low interest has reduced significantly.

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              • #8

                #8

                Re : RBI cuts repo rate by 0.25%

                Originally posted by redblue View Post
                SBI reduced base rate by a whopping 5 points. Their advantage of low interest has reduced significantly.
                What do you mean whopping (or, are you just being sarcastic)!! 5 points is just 0.05%. SBI has already reduced its BPLR in anticipation of this cut. I dont think they will reduce any further, unless RBI reduces repo rates further.

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                • #9

                  #9

                  Re : RBI cuts repo rate by 0.25%

                  Originally posted by murugesh View Post
                  What do you mean whopping (or, are you just being sarcastic)!! 5 points is just 0.05%. SBI has already reduced its BPLR in anticipation of this cut. I dont think they will reduce any further, unless RBI reduces repo rates further.
                  When smaller banks like UBI and PNB can reduce by 25 base points SBI can atleast match them.

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