The RBI's Statutory Liquidity Ratio (SLR) requires banks to set aside a portion of deposits in liquid assets, indirectly affecting home loans. Key points:
Interest rates: SLR changes can impact home loan rates, potentially causing increases.
Banking system liquidity: SLR influences funds for lending, affecting liquidity in the home loan market.
Floating interest rate home loans: SLR changes may adjust monthly instalments for floating interest rate home loans.