The RBI's latest monetary policy announcement cut the
The RBI's latest monetary policy announcement cut the repo rate by 25 basis points to 6.25%, marking the first rate cut in over two years. For the roughly 4 crore home loan borrowers in India, this has direct implications for their monthly EMIs.
If your home loan is linked to an
If your home loan is linked to an external benchmark (repo rate or T-bill rate), the rate cut will be transmitted to your loan within 3 months , it is mandatory. For a ₹50 lakh loan at 8.5% over 20 years, a 25 bps reduction translates to approximately ₹850 per month in EMI savings, or about ₹10,200 per year.
However, if your loan is still on the
However, if your loan is still on the older MCLR-based regime, transmission will be slower and may not reflect the full 25 bps cut. This is a good time to consider switching your loan to an external benchmark-linked rate. DealPlexus can help you evaluate whether refinancing makes financial sense based on your remaining tenure and outstanding principal.
Looking ahead, the RBI has signalled an accommodative
Looking ahead, the RBI has signalled an accommodative stance, which means more rate cuts are possible in 2026. For prospective homebuyers, this creates a favorable window to lock in financing at historically attractive rates.
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