Loans to get cheaper after RBI cuts key policy rates

Mumbai, May 3 – The Reserve Bank of India (RBI) on Friday has cut key policy rates by 0.25 percent, a move that will make auto, housing and other loans cheaper and help accelerate economic growth.

The repo rate, the rate at which the central bank lends to commercial banks, has been cut by 0.25 percent to 7.25 percent.

The reverse repo rate, the rate that RBI pays to commercial bank on their parked money , has also been lowered by 0.25 percent to 6.25 percent. (IANS)