Personal Loan: How inflation influences your interest rates? Explore here
2 weeks ago

Personal Loan: How inflation influences your interest rates? Explore here

Live Mint  

Another component of our personal finance, where inflation leaves an impact is interest rates of personal loans. When the repo rate goes up, borrowing becomes more expensive for banks, leading to higher consumer interest rates personal loans are no exception. Ashish Tiwari, Chief Marketing Officer, Home Credit India, expressed that, “Personal loan interest rates are closely tied to inflation levels in the economy. When inflation rises, the Reserve Bank of India increases key interest rates to curb spending and borrowing, which in turn has potential to make personal loans like any other loan type more expensive. In conclusion, direct influence on personal loan interest rates is exerted by inflation, and also the one which influences costs of borrowing, EMIs, and total cost of credit.

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History of this topic

Personal Loan: 5 macroeconomic factors that affect your interest rates
2 weeks, 4 days ago

Personal Loan: 5 macroeconomic factors that affect your interest rates

Live Mint  

Before getting a personal loan, various factors such as credit history, banks, income, and employment type, among many other factors, may determine interest on your loan. However, there are certain factors beyond the control of a borrower and a lender that may have an impact on personal loan interest rates. The central bank will adjust the interest rates accordingly, which …

Understand the role of interest rates in personal loans to make smart financial decisions
Trending News
4 weeks ago

Understand the role of interest rates in personal loans to make smart financial decisions

Live Mint  

Being one of the most important yet ignored segments of banking costs, interest rates are directly proportional to the personal loans you are willing to pay towards the borrowed money. Factors affecting interest rates on personal loans Several factors might influence the interest rate on a personal loan, including: Borrower's credit score: The higher your credit score, you most likely …

What are the alternatives to using interest rates to tackle inflation? We put your questions to economist Saul Eslake
10 months, 3 weeks ago

What are the alternatives to using interest rates to tackle inflation? We put your questions to economist Saul Eslake

ABC  

Daniel Wigg doesn't drink alcohol anymore. "Although, like interest rates, it would leave older people unscathed," Mr Eslake said. Saul Eslake says lifting income tax was a common way of responding to high inflation in the 1950s and 60s, but "no government would want to do that now". Mr Eslake also said interest rates were kept "too low for too …

UK borrowers brace for more expensive loans as inflation fails to fall as anticipated
1 year, 6 months ago

UK borrowers brace for more expensive loans as inflation fails to fall as anticipated

Associated Press  

LONDON — U.K. borrowers will be bracing themselves for further increases in lending costs after official figures Wednesday showed inflation failing to fall as anticipated in May. Higher interest rates help lower inflation by making it more expensive for households and businesses to borrow, meaning they potentially spend less, thereby reducing demand pressure on prices. “We know how much high …

What's your personal rate of inflation?
2 years, 1 month ago

What's your personal rate of inflation?

ABC  

While inflation has officially reached 7.3 per cent for the year, prices aren’t rising at the same rate across the board. To estimate your personal inflation rate, we took a breakdown of average Australian spending called the Consumer Price Index, and made a few tweaks based on the answers you gave us earlier. Measuring housing costs The official inflation rate …

The Fed’s solution might be worse than the problem
2 years, 2 months ago

The Fed’s solution might be worse than the problem

Live Mint  

The Federal Reserve System, the central bank of the US, has increased its benchmark interest rate, from near zero in mid-March 2022 to 3-3.25% in late-September 2022, in five hikes over the past six months, and projections place it in the range of 4.5% by end-2022. Small Indian cinemas take on big Hollywood studios Contrasting Q2 stories of two tech …

How RBI rate hike will tame inflation? Explained
2 years, 7 months ago

How RBI rate hike will tame inflation? Explained

India TV News  

Highlights Shaktikanta Das said that MPC unanimously decided to hike repo rate with a view to contain inflation Commercial banks are likely to hike interest rate on all types of retail & institutional loans soon Notably, inflation in India has remained above the targeted 6 per cent since January RBI Rate Hike: Treating inflation is like treating cancer! Image Source …

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