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5 Changes that will Impact your Personal Finances from October 1

The 0.75 per cent discount being given on credit card payments made to buy fuel at petrol pumps will be withdrawn from October 1. From today, that is October 1, there are five changes that will have a bearing on your personal finances. Here is a look at those five changes and how it can impact your financial decisions and finances. External benchmarking of loans As directed by the Reserve Bank of India (RBI), all floating rate loans, i.e., personal, housing, auto etc. disbursed by banks from October 1, have to be linked to an external benchmark. The external benchmark can be RBI's repo rate, 3 or 6 month treasury bill yield or any other market interest rate benchmark published by the Financial Benchmarks India (FBIL). As per the RBI directive, banks have to reset the interest rates linked to the external benchmark at least once in three months. Therefore, any change in the external benchmark rate will impact your EMI (equated monthly instalment) every three months or less, as specified in the agreement with the bank. Source: https://economictimes.indiatimes.com

 

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