Fee Only Financial Planners



Interest Rates and its influence on your debt


Debt is an important avenue which provides finance to individuals, corporates, and governments for fueling their needs like buying a home, increasing a company’s production, financing a project etc. Debt is provided by Lenders like financial institutions, banks and also by individuals, they, in turn, expect a return for lending their money. There are many types of debt channels the common ones are loans and bonds.

As said earlier lenders expect a return for lending their money, this is called interest rate. In a broader economic view, the rate of interest is determined by the demand and supply of money available in the market. Money flows into the market from different channels and there should be an onlooker to monitor and control such demand and supply, here comes the central bank i.e. RBI (Reserve Bank of India) to don the role.Read More