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Increase in loan rates taking a toll on households
By qwcdirect | June 5, 2010
Several households bank on single breadwinners for sustenance. The world of joint families is long past. There is a sitting system of allocating budget and hoarding assets in due phase. Salaried employees take advantage of loans available to them and are generally covered by their companies. However, people working on contracts have a different story.
They are left to mortgage their belongings for loans to accumulate certain achievements. However, their aspirations are getting nipped in the bud by a sudden escalation in loan rates. Fed Bank, RBI and other main banks in different countries have increased repo and reverse repo rates. This, for a layman, ushers an assurance of higher interests to pay.
Since the middle class is the vanguard of economic system in all countries; some leniency needs to be allowed to them. Banks may reduce rates for particular ceiling. Till then, the average household will bear the brunt of an apathetic economic system.
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