PLR, SLR, CRR, repo rates cut - is it really worth it for common man?

The speculation on rate cuts has been all over the media, be it newspapers, TV or magazines. Everyone is hoping to get some relief from RBI and finance ministry in form of interest rate cuts. But do these rate cuts really change much for the common man on street? The answer is indirectly, of course, it affects the common man. The corporates can borrow at lower rates, can get the credit to boost their production or in most cases for the operating cash requirements easily. The banks get the liquidity more easily and can cope with redemption's happening due to insecurity in market. It also helps in controlling the market crash a bit. All these things affect the common man here or there in a touch and go manner but not directly.

In real life, the rate cuts make small dents in the wall that separates common man from larger dreams. The dream of owning a house, the dream of graduating from a scooter to a car and so on.
These rate cuts can make the loan EMI smaller but only by a small percentage. For 75 basis point cut or 0.75 % cut, a 20 year, 50 lakh loan EMI comes down from 51,000 to 49,500. I mean, its still unaffordable for most of the people and if you have gone shopping inIndian real estate market then you must be aware that 50 lakhs may or maynot get even a small house.

Perhaps the need of the hour is to promote more affordable housing, instead of promoting all residential projects. Most of the builders are investing in lavish, lifestyle apartments and focusing on affordable housing. These builders also enjoy the benefits like subsidized lands in certain cases but these benefits never get passed onto the public.