Retails loans may turn cheaper as RBI cuts SLR
Retail loans may turn cheaper as country’s central bank, Reserve Bank of India (RBI) has announced a reduction of one percentage point in Statutory liquidity ratio (SLR) for banks.
Retail customers may get the benefit of lower lending rates as banks may reduce rates on retail loans.
The lower SLR, which is the proportion of deposits banks invest in government bonds and other liquid assets, is to release around Rs. 68,000 crore for banks, which will result in retail loans getting cheaper.
M Narendra, Chairman and managing director of Indian Overseas Bank, said that banks could cut lending rates for housing loans and other retail loans instead of lending cuts for all sectors.
However, this is likely to be a decision of individual banks.
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