How Interest Rate Cuts Can Benefit You?
Rate watcher's guide
The interest rate changes brought by the Indian banks will impact differently to different people depending on the fact whether they are loan borrower or fund depositors. "People watch interest rates keenly either when they are about to borrow or they already have a loan. The other reason is to find out whether the interest rates have peaked and is it time to lock in investments?" Sadagopan says.
"Most of these people are on variable or floating rates. I ask them to wait for a while to see what their banks are going to do before taking any action. I remind them that it is only a matter of time before other banks follow SBI, and they have to consider the cost and the effort involved in switching a loan to another borrower before taking any decision," adds Sadagopan.
Also Check Out: 7 Reasons That Prompt You To Switch Banks
