Availing of a loan now is much cheaper!! As the RBI( Reserve Bank of India) cut its key rates,various banks like IDBI Bank reduced its home and educational loan rates by 0.5 per cent with immediate effect.

The rate cut will be applicable to both the existing and new customers, the bank said in a press statement here.
Following the revision, the home loans will be now available to customers for an interest rate of 11 per cent as against 11.5 per cent earlier.Simultaneously, the margin on housing loans has been enhanced from 15 per cent to 20 per cent for loans up to Rs 30 lakh and to 25 per cent for loans over Rs 30 lakh, the bank said.

Also the country's second largest public-sector bank, Punjab National Bank, had recently cut its prime lending rate by 0.5 per cent effective from November one and deposit rates from December one.

With the decrease in loan rates our purchasing power increases.