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Buying a car or bike on EMI will become expensive, see how much it will affect your pocket?

New Delhi. Rising input costs and semiconductor chip shortages across the world have forced many automakers to increase the prices of their vehicles, which has a direct impact on the customers. After this, now the Reserve Bank of India (RBI) has shocked the customers by increasing the repo rate. If you are also planning to buy a new car or bike on EMI, then it can be a bit more expensive for you.

The news of a hike in the repo rate is likely to impact many sectors, but the automotive segment will be particularly affected. Federation of Automobile Dealers Association of India (FADA) President Vinkesh Gulati said, “The RBI’s move to increase the repo rate by 40 bps has clearly upset everyone. With this move, taking an auto loan will become costly. ,

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What is Repo Rate?
Repo rate means that the rate at which RBI gives loans to commercial banks and other banks is called repo rate. The increase in the repo rate means that the loan from the RBI to the banks will also become expensive and the loan to the customers from the bank will also be expensive. The repo rate has now been increased from 4 percent to 4.40 percent. Home loan, vehicle loan will be affected due to increase in repo rate. If the cost of credit remains high, then the demand for related products will also decrease.

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How many companies are affected by the repo rate
The effect of any change in the repo rate is directly visible on the automobile companies, auto parts or equipment manufacturers. Apart from this, due to the change in home loan EMI, it has some impact on almost all companies in the infra sector including real estate companies, NBFCs, cement, steel. About 200 sectors companies are associated with real estate.

Tags: Auto News, Autofocus, Car Bike News, car loan, RBI

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