As Reserve Bank of India (RBI) Governor Raghuram Rajan announced the third cut in repo rate in 2015, the homebuyers in Odisha have welcomed the decision with the hope they will be able to pay less to buy homes. The repo rate was cut by 25 basis points to 7.25%.
The real estate market in Odisha has witnessed a big slump over the last two years, thanks to the “recession” in the market and series of fraud cases involving dubious real estate firms. People, who are willing to buy homes from reputed builders, find the cost very high. But, today’s RBI decision has revived their hopes.
Raghuram Rajan, while announcing the cut in repo rate, asked the banks to pass on the benefits to the consumers, leaving them with no option but to reduce the home loan rate. As a result, EMI will go down for the existing and prospective customers very soon.
“This is a welcome step. Once the EMI goes down, we will be able to save some money. Even though it won’t be huge, it will definitely bring some respite at a time when we are forced to deal with price rise slowdown in market,” said Sangita Sen, an IT Professional, residing in Bhubaneswar.
“We have been planning to buy a house, but not able to do so because of some technical issues. We are happy that we will get some benefits because of this reduction in repo rate. Of course, the delay came as a blessing in disguise for us,” says Arundhati Mallick, an Entrepreneur in Bhubaneswar.