06/06/2025
Home loan borrowers have a big reason to cheer! The Reserve Bank of India (RBI) has cut the repo rate by a huge 50 basis points in the Monetary Policy Committee (MPC) meeting. With this, the cumulative repo rate cut since February this year stands at 100 basis points or 1%! Repo rate is the rate at which the RBI lends to the banks. If this rate comes down, banks are able to in turn lend to borrowers at lower interest rates. To put it simply, today’s jumbo 50 bps rate cut would in the coming months mean lower EMIs for home loan borrowers. While the impact of the 1% repo rate cut will take time to reflect in home loan borrowers’ EMIs, the transmission is expected to be faster this time round. What does 1% repo rate cut mean for your loan EMIs?