“The recent RBI decision to maintain the repo rate at 6.50%, with a ‘withdrawal of accommodation’ stance, brings promise for new home loan borrowers and others. Stable interest rates instill confidence, reducing the urgency for loan refinancing.

As the festive season approaches, this stable rate environment will impact personal and consumer loans, including those for festive shopping. Consumers are likely to leverage favorable lending conditions. Stable rates may also boost demand for homes and vehicles during this festive period, fueling economic growth.

Moreover, the stable rate environment is expected to stimulate demand for business loans and Loan Against Property (LAP). Businesses needing working capital and anticipating manufacturing growth are likely to find this lending atmosphere favorable.

This stability sets the stage for robust lending growth in the crucial last two quarters of the financial year, benefiting financial institutions and borrowers alike, and supporting economic stability and growth.”