Скачать или смотреть How does repo and reverse repo affect the EMI

Many might not be aware but monetary policies affect the real estate market on a scale.

Tools such as repo rates and reverse repo rates can easily swing interest rates high or low.

So repo rates are nothing but repurchase rates at which the central bank of India, in this case, the RBI lends money to the commercial banks to function.
On the same note, reverse repo rates are the rates the banks lend to the RBI.

Let’s just assume that if the repo rates increase, borrowing costs for the banks increase, This cost is not borne only by the banks, but consumers indirectly come under the radar as well.

So when the repo rate increases, the 1st move of the bank is the increase the credit rate, in easier terms the interest rates on houses, banks, personal loans, etc.

This causes the EMIs to go higher and so does the scrutiny. On the other hand, when reverse repo increases, banks are benefitted by lending money to the RBI as they earn more on interests
and hence, the banks end up lending more to the RBI, this in turn leads to less liquidity with the banks to create credit.

So to compensate for less liquidity, they increase the interest rates.
So check the policy rates, and monetary policy status and ask banks how will they tackle a sudden increase in these rates.
Currently, the repo rate is being maintained at 6.5% and the reverse repo rate is maintained at 3.35%.