RBI’s 50 BPS Repo Rate Cut Brings Big Relief for Home Loan Borrowers

The Reserve Bank of India (RBI) has announced a 50 basis points (bps) repo rate cut, bringing it down to 5.50%, marking the third consecutive reduction in 2025. This move is expected to significantly lower home loan EMIs, particularly for borrowers with floating-rate loans.

 

For a ₹30 lakh home loan over 20 years, borrowers can expect a monthly EMI reduction of approximately ₹1,176, translating to ₹14,112 in annual savings. The cumulative 100 bps repo rate cut since February 2025 has further enhanced affordability, making homeownership more accessible.

 

Experts suggest that banks will soon revise lending rates, with SBI’s home loan interest expected to drop from 8.00% to 7.50%, reducing EMIs across tenures. Borrowers are advised to monitor rate transmission and consider refinancing options for maximum benefit.

 

Key Highlights:

Source: India TV News | Financial Express | MSN News