Hello
A New Year is set to dawn. From January 1, 2023 a slew of changes with regard to banking, insurance, pension and even overseas travel will come into effect.
While CII is cognisant of the fact that RBI's interest rate hikes of 190 basis points so far in this fiscal have been warranted to tame inflationary pressures, the corporate sector has now started to feel its adverse impact.
The increase will lead to an across-the-board uptick in costs of borrowing for all classes of borrowers but this might also lead to a better return on deposits for those who keep money in banks.
Those who took car and housing loans will now have to shoulder additional interest burden.
This is the lowest since 1977-78, when the EPF interest rate stood at 8 per cent.
Making rational decisions on repayment can help reduce unnecessary liabilities. For this, it is necessary to pay attention to a few things.
The Department of Financial Services came out with operational guidelines in the backdrop of Supreme Court's direction to implement the interest waiver scheme, which is likely to cost the exchequer Rs 6,500 crore.
The EPFO will provide 8.15 per cent interest on EPF soon and the remaining 0.35 per cent rate would be credited into the subscribers' account by December 31.
As risk on investments increase and interest rates fall, banks have to work with squeezed margins while offering home loans.
With the reduction in their respective benchmark lending rates, home, auto and other loans have become cheaper.