Good news for the consumer. Your EMIs could come down soon, as finance minister P Chidambaram has advised public sector banks to slash interest rates on loans on consumer durables.
“The point (that EMIs have to be reduced) has been well taken by the banks,” Chidambaram said after a review meeting with PSU bank chiefs on Saturday. “The middle class is complaining about increasing EMIs and stretching the payment cycle.”
Besides advising banks to provide education loans to all who met the parameters, he said the number of ATMs would be doubled from 63,000 in two years and the technology upgraded so that the teller machines could also accept cash.
The minister said certain problems, including fuel supply agreements, land acquisition and government entities not paying their vendors on time, had affected investments. “I intend to address the issues and take them up with the respective ministries.” He noted that the health of the banking industry was “extremely good”.