New Delhi, March 20 -- Personal loans are a popular choice for people who are in need of funds but do not own high net worth assets to provide as collateral. These loans offer quick disbursement and minimal paperwork. The interest rates offered in personal loans are generally higher than that of other loans available in the market. Repo rate cuts by the Reserve Bank of India (RBI) have a direct impact on personal loan interest rate and EMIs (Equated Monthly Installments).

The interest rate at which the RBI lends to commercial banks is called repo rate. If a cut in this rate occurs, borrowing costs will decrease for banks, and with that, lending rates for consumers may also fall.

Lower interest rates: There is a possibility of the banks ...