Latest news with #Kareen
Mint
3 days ago
- Business
- Mint
RBI cut interest rates: How will it impact personal loan interest rates?
On 6th June 2025, the RBI cut the repo rate by 50 basis points and the Cash Reserve Ratio (CRR) by 100 basis points. It was RBI's third repo rate cut in successive Monetary Policy Committee (MPC) meetings since February 2025. The interest rate cuts are expected to bring down interest rates on personal loans and other loans. In this article, we will understand what the repo rate is, the repo rate cuts by the RBI, and how it will impact personal loan interest rates. Before understanding the impact of RBI repo rate cuts on loan interest rates, let us first understand what is the repo rate. The repo rate or the Repurchase Rate is the rate at which banks borrow money from the Reserve Bank of India (RBI). The money is borrowed by offering Government Securities (G-secs) as collateral to the RBI. The borrowing bank later buys back the G-secs from the RBI at a higher rate, including the interest amount calculated as per the repo rate. On 6th June 2025, the RBI cut the repo rate by 50 basis points from 6% to 5.5%. It is the RBI's biggest repo rate in the last few years. Before that, the RBI cut the repo rate from 6.5% to 6.25% in February 2025, and further from 6.25% to 6.0% in April 2025. Apart from the repo rate cut, the RBI announced the CRR cut by 100 basis points. It will be done in four equal tranches of 25 basis points each on 6th September, 4th October, 1st November, and 29th November. A cut in the repo rate has a direct impact on the personal loan interest rates. When the repo rate is cut, it lowers the cost of borrowing for banks. When the cost of funds falls for banks, they can lend to customers at a lower rate. Thus, when the repo rate decreases, the interest rates on personal loans and other loans go down. The RBI's move to cut the repo rate by 100 basis points or 1% since February 2025 is good news for personal loan borrowers. The borrowers can expect a cut in interest rates on personal loans. If banks lower the interest rates on personal loans by 100 basis points, it will result in huge interest rate savings for borrowers. Let us understand the savings in interest amount with an example. Kareena wants to take a Rs. 10 lakh personal loan for a tenure of 5 years. At a 12% interest rate, Kareena will have to pay an Equated Monthly Instalment (EMI) of Rs. 22,244. She will pay a total of Rs. 13,34,667 to the bank through 60 EMIs. Thus, the total interest paid by Kareena on the 5-year personal loan will be Rs. 3,34,667. Now, suppose the bank reduces the personal loan interest rate to 11% after the 100-basis points repo rate cut by the RBI. For the same Rs. 10 lakh personal loan of 5 years, Kareena's EMI will fall to Rs. 21,742. She will pay a total of Rs. 13,04,545 to the bank through 60 EMIs. The total interest paid by Kareen on the 5-year personal loan will be Rs. 3,04,545. With the personal loan interest rate falling from 12% to 11%, Kareena's EMI will fall from Rs. 22,244 to Rs. 21,742. Thus, she will save Rs. 502 every month on her EMI. The total interest paid over the 5-year personal loan will fall from Rs. 3,34,667 to Rs. 3,04,545. Thus, she will have interest savings of Rs. 30,122 over the entire loan tenure. The table below shows the savings due to changes in personal loan interest rates due to a cut in the repo rate. Personal loan amount & tenure Rs. 10,00,000 for 5 years Rs. 10,00,000 for 5 years Interest rate 12% 11% EMI Rs. 22,244 Rs. 21,742 EMI saving Rs. 502 Total interest paid over 5 years Rs. 3,34,667 Rs. 3,04,545 Total interest savings Rs. 30,122 The above-expected interest rate cuts are not just limited to personal loans. The cuts in Repo Rate are expected to lead to a cut in interest rates on most loans like home loans, vehicle loans, business loans, etc. One of the important objectives of the RBI is to keep inflation at 4% with a tolerance band of 2 to 6% (+ or – 2%). For April 2025, the CPI inflation rate was at 3.16%, well below the RBI's target rate of 4%. The lower inflation rate gave the RBI the elbow room to cut interest rates. The RBI expects the CPI inflation to be 3.7% for FY 2025-26. It is within the RBI's target rate of 4%. However, during his 6th June Monetary Policy statement, the Governor mentioned that after the 100-basis points repo rate cut since February 2025, the RBI is left with limited space to support growth. Hence, the MPC has changed its stance from accommodative to neutral. Going ahead, the MPC will assess the incoming economic data for future course of action. Thus, going ahead, repo rate cuts, if any, will depend on the inflation rate and other economic data. As mentioned earlier, there is limited scope for any further repo rate cuts in the near future. It will all depend on how inflation behaves. Banks will pass on the repo rate cut benefit to their customers in the form of lower interest rates on personal loans and other loans. Hence, if you are looking for a personal loan, consider going for it. Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn.
CBC
21-02-2025
- Health
- CBC
He was critically hurt in a 2009 car crash. He's still in hospital, 16 years later
Ken Rekowski has had to make a home of his room at the Renfrew Victoria Hospital for most of the last 16 years. The 53-year-old was first admitted in 2009 after a car crash left him with a serious brain injury. Since then, he's been waiting for suitable permanent care in the community. "As far as I know … I'm cooped up in here for the rest of my life," Ken said. When CBC visited in early February, Ken's room still had a small Christmas tree to one side, dog-themed decorations and a photo of Ken with his motorcycle and dog Harley. His twin sister Kareen says he spends most days entirely in his bed, even though he can get around using a wheel chair. "I feel like criminals have more freedom than I do," Ken said. Ken still dreams of outings in the community with family and friends and wants to start a business involving dogs. "I want to get back out into ... the free world where I can actually do something productive," he said. Kareen says Ken is occupying a hospital bed because they haven't been able get the necessary supportive care for him to live in his hometown. "When it comes to acquired brain injury and especially in a small community like ours, there really is no choice. We need to create choices," she said. Kareen said throughout Ken's long hospital stay, she's worried about him getting appropriate care in his community. After a brief placement in a community home, Ken is again facing a challenge faced by people with acquired brain injury in the province: a long uncertain wait to be discharged from hospital. First stay lasted 13 years Ken was first hospitalized in January 2009. On the night of the car crash, he was on his way to his job as a security guard just outside Renfrew, Ont. Road conditions were poor and he lost control of his car. Initially, doctors thought Ken's injuries were so severe that he wouldn't survive. Kareen says the family was told to plan a funeral. Ken survived, but the crash left him with severe cognitive and physical impairments. He has problems forming new memories, gets confused about what year it is and suffers from a "right-side deficit" that leaves him with limited mobility in his right leg and virtually none in his right arm. He also requires a wheelchair. In 2016, a team of specialists in Hamilton, Ont., assessed him over three months and concluded he shouldn't be taking up a hospital bed. Back in 2019, Ken and Kareen were told it could be a "lifetime wait." Kareen said the COVID-19 pandemic worsened the situation. Infection control protocols reduced his access to the supports Kareen had arranged to maintain his cognitive and physical health. In 2022, Ken felt renewed hope when he was offered a spot funded by Ontario Health at the Pathways to Independence residence in Renfrew. "They were supposed to be an ABI [acquired brain injury] service provider, which meant we figured the support staff would understand acquired brain injury. We anticipated a plan in place for Ken to meet his needs," Kareen said. 'Locked up inside' Hope faded with time, however, as Kareen described an uphill battle to arrange visits and outings with Ken. Kareen became worried bed transfers weren't being done properly. Overall, Kareen felt the care didn't reflect Ken's personal needs and — just like at the hospital — he was being left in a chair for long periods of time. At one point, she discovered he'd been left in a recliner wearing pants soaked with urine. "Rather than getting back out into the community again, I was locked up inside in a wheelchair all the time," Ken said. CBC reached out to Pathways to Independence for an interview. Acting CEO Christie Swann provided a written statement and declined to share details on a "former resident," citing confidentiality. Swann said the non-profit provides residents with access to a variety of services and trains staff in progressive brain injury education. She said each team member in Renfrew receives one-on-one training on bed transfers and equipment. Kareen said she complained often and was in constant contact with management. She involved a health system navigator and even appealed to Ontario Health to help improve Ken's situation. Swann said the organization has "a thorough policy" for addressing client and family member complaints. The Ministry of Health said it couldn't comment on Ken's case, but if a client is unhappy with how a provider handles a complaint, the issue can be taken up with the Health Services Appeal and Review Board as well as the Patient Ombudsman. Back in hospital Kareen said Ken's knee was injured during a bed transfer on the morning of May 23, 2024, and he was taken back to the Renfrew Victoria Hospital. "It's devastating," Kareen said. "Ken doesn't want to be there. I don't want to be going in and out. Kenny's friends don't want to visit him there." Kareen said it has been difficult to re-establish the supports Ken had in hospital before he was sent to Pathways. She has arranged a support worker to visit him Monday to Friday. "I'm coming in in the evenings and I'm bringing him dinner," Kareen said. "Ken needs to get out of the hospital. He's right now pretty much spending ... 24/7 in a bed and that … that's inappropriate." After his hospital re-admission, Kareen tried going to Ontario's Patient Ombudsman to have the funding for Ken's bed transferred to a different care provider. She said they didn't want to go back to Pathways. "You have more freedom in hell than you did with Pathways," Ken said. In a letter from the ombudsman Kareen provided CBC, the office said funding issues are outside their jurisdiction and she needed to work with the hospital on a discharge plan. The Renfrew Victoria Hospital declined to comment on Ken's case. Ken's case not isolated The Ontario Brain Injury Association said others are facing similarly lengthy and uncertain wait times to be discharged from hospital. The province has 33 community living homes for people with acquired brain injury. The system hasn't improved since CBC reported on the Rekowskis six years ago. "Not a whole lot has changed. The government has invested in a few extra beds in some places," association president Ruth Wilcock said. "There's a huge gap still. It's something we do need to advocate for." She said the association also tries to help clients and caregivers advocate if they are having issues with a home. "It's not like, well, I stayed in this hotel, I don't really like it, I'm going down the street to another hotel. That option isn't there," she said. "I think the facilities try to do the best they can, but we also know that they're short funding on their end." 'I've been on my own' As for the Rekowskis, Kareen is reflective and resolute about their 16-year journey. Their mother, now 83, requires more care, and Kareen wants to see improvement from a system that has let her down repeatedly. "What we need is person-centred care. Our health system is really in a lot of turmoil and we need to change that," she said. "Ultimately, I've been on my own and our family's been on our own." Kareen is reaching out directly to service providers and trying to arrange housing so Ken can have both 24-hour support and the autonomy he needs. Ken is grateful that his sister hasn't given up.
