REPO Rate Effects on Your Existing Home Loan
RBI second time Cuts Repo rate by 25 bps in April 2025 (before couple of months 25 bps was reduced) : Borrow can enjoy the advantage of reduced EMI. Home loan borrowers are having an excellent year 2025, which started with a 25 basis point reduction in the repo rate by the RBI. Now, the central bank has announced another 25 basis point rate cut. This means that home loan borrowers, especially the ones with floating-rate home loans, will see their EMIs fall substantially in the coming days as the lenders start passing on the benefit of this rate cut. With the latest cut, the repo rate now stands at 6%. Further, the RBI Governor announced the c .. The current Repo Rate is 6.00 after reducing 25 bps. We tell you how this rate cut will impact your EMIs, how much future rate cut you can expect this year, and how you can best use the current interest rate scenario to manage your home loan. How much will you save on your home loan EMIs due to two repo rate cuts? Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution Pvt Ltd, explains how much home loan borrowers will save on their home loan EMIs due to the 50 basis points repo rate cuts. For a 20-year home loan, assuming the original interest rate was 9%, a 0.5% (50 bps) reduction to 8.5% will bring significant EMI savings: For example, a borrower with a loan amount of Rs 50 lakh will see a monthly EMI saving of Rs 1,960. However, with the 20-year tenure of a home loan, the rate cut will result in total savings of Rs 4.70 lakh. To know more about rates cuts and if you wants to reduce you EMI further, you may contact us filling up the contact us botton.