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What is the Repo Rate? The repo rate is the rate at which the Reserve Bank of India (RBI) lends money to commercial banks. It plays a crucial role in determining loan interest rates in the economy. When the repo rate changes, banks adjust their lending rates, affecting everything from home loans to car loans and even business financing. How a Higher Repo Rate Affects Loans 1. Impact on Home Loans When the RBI increases the repo rate: Banks also raise interest rates on home loans. Your home loan EMI goes up, making monthly payments more expensive. Some banks may offer to extend your loan tenure instead of increasing EMI—but you’ll end up paying more interest over time. Result: Home loans become less affordable, and some buyers may delay purchasing property. Example: If you had a home loan of ₹40 lakhs at 8% interest, your EMI was around ₹33,000. If the rate goes up to 9%, your EMI becomes ₹36,000—a ₹3,000 monthly jump. 2. Impact on Car Loans Car loans also get costlier when repo rates r...

What is Repo Rate? The repo rate is the interest rate at which a country’s central bank (in India, the Reserve Bank of India or RBI) lends money to commercial banks for a short period. In simple words: When banks need money, they borrow it from the RBI. The interest the RBI charges on that loan is called the repo rate. Why Does the Repo Rate Matter? The repo rate helps regulate the economy. Here’s how: Example: Understanding Repo Rate with a Real-Life Scenario Let’s say Bank A needs ₹1 crore to keep lending money to its customers. It borrows this from the RBI. If the repo rate is 6%, Bank A repays ₹1.06 crore. If the rate goes up to 7%, it repays ₹1.07 crore — more expensive. If the rate drops to 5%, it repays ₹1.05 crore — cheaper. Banks usually pass this cost on to customers. So your home loan, car loan, or EMI could change when repo rates change. Why Does RBI Change the Repo Rate? The RBI adjusts the repo rate depending on the state of the economy: To fight inflation → Increase repo...

Mutual Fund क्या होता है ? निवेश करणे से पेहले किन बातो को ध्यान रखकर निवेश करे ? Mutual fund एक शेयर बाजार से जुडा हुआ एक निवेश साधन है (market linked product). जिसमे निवेशक अपना पैसा दीर्घकाल के लिये निवेश करकर अच्छा खासा रिटर्न कमाते है. अगर उदाहरण के तौर पर समजा जाये तो मान लिजिए की पूजा को अपना पैसा निवेश करना है और वह चाहती है की उसकी राशीं का शेयर बाजार में निवेश हो. लेकिन समस्या यह है की उसे शेयर बाजार का ज्ञान नहीं है, इस मामले में पूजा अपनी धन राशीं को mutual fund द्वारा मार्केट में निवेश करेगी. अभि जानने की कोशिश करते है, mutual fund कैसे काम करता है? AMC (Asset Management company) के द्वारा पूजा अपनी धन राशीं का निवेश उनके किसी अच्छे फंड में करेगी अब वह राशीं पेशावर फंड मॅनेजर्स द्वारा Diversified तरिके से शेयर मार्केट और अन्य प्रतिभूतीयो में निवेश करेंगे जिनमे कंपनीयो के बॉण्ड और गोल्ड फंडस् भी शामिल है. Diversified इन्व्हेस्टमेंट क्या होता है, यह हम नये आर्टिकल में सांझा करेंगे. सामान्य तरिके से देखा जाये तो पूजा निवेश करते समय किन बातो को ध्यान में रखकर निवेश करेंगी. ...