There is relief news for general public and businessmen before Diwali! Reserve Bank of India (RBI) can cut 25 Basis Point in the next MPC meeting to be held on 29-30 September. This information is given in the latest report of State Bank of India (SBI). According to the report, inflation rates can go below 2% in September and October and by fY 2027 it is expected to be 4% or less. The impact of GST rates will also be clearly visible – inflation may fall by 1.1% in October, which may be the lowest level after 2004. In August, the CPI was above 2%, but was much lower than the RBI estimates (3.2%). If RBI reduces the REPO rate this time, the EMI of Home Loan, Personal Loan and Business Loan can be relieved. The RBI has already cut 0.50% in June, and now the Indian market is expected to have cheaper rates after the cut by American Federal Reserve.

If you have also bought a house on the loan, then the interest rates of your Home Loan have also decreased after the RBI recently cut the repo rate. The direct advantage of this is that your EMI and Total Loan Payable Amount will decrease. For example, if you have taken a loan of 50 lakhs for 20 years at an interest rate of 8.3%, then your EMI is about ₹ 42,760, but if the interest rate is 7.3%, the EMI will be ₹ 39,730, which will save you ₹ 3,000 per month. Now if you invest this savings amount in SIP, then in 20 years your investment can make a corpus of about 35 lakhs. This means, out of the total loan payable of 95 lakhs, 35 lakhs will be benefited only by SIP investment. Overall, you will have to pay only 60 lakhs at a loan of 50 lakhs. In this video, we will understand this calculation in detail and tell how you can take advantage of millions from this strategy.