RBI Policy: Big relief! Your home loan EMIs may come down by THIS much on Rs 50 lakh amount

The Reserve Bank on February 7 cut the repo rate, at which it lends to the commercial banks, by 0.25 percentage point to bring down the key benchmark rate to 6.25%. This reduction means banks’ borrowing costs will come down, which will ultimately result in lower rates on loans, including home and other personal loans.

RBI Governor Sanjay Malhotra, in his maiden monetary policy review of the central bank, announced that after a detailed assessment of the evolving macroeconomic and financial developments and the economic outlook, the rate-setting panel of the central bank unanimously decided to cut the repo rate, paving the way for banks to replicate the rate cut for loan borrowers by a similar margin if not more.

The central bank has also lowered the standing deposit facility (SDF) rate to 6%, the marginal standing facility (MSF) rate and the bank rate to 6.5% from 6.75%. The MPC also decided unanimously to continue with the neutral stance and remain unambiguously focused on a durable alignment of inflation with the target while supporting growth, the governor said.

Also Read RBI MPC meet: What has changed since last MPC meet? Why a 25 bps cut seems imminent? Home loan EMI burden to ease as RBI most likely to cut rates Apt time for a rate cut by RBI, says finance secretary RBI MPC Meeting in February 2025: Policy approach changing, 25 bps repo rate cut expected this Feb, says BofA Securities

The central bank started hiking the repo rate in the post-Covid era to absorb the excess liquidity in the economy and curb inflation. After seven consecutive hikes in the repo rate, the central bank applied brake in February 2023 and since then maintained the status quo at a 6.5% interest rate, which resulted in all banks and non-bank lenders taking their lending rates to multi-year highs. Now that the government has initiated measures to boost consumption through income tax relaxations and the RBI cutting rates, the middle class, especially will heave a sigh of relief.

Also read: Rs 25 lakh salary & Rs 50 lakh home loan can save you Rs 11,461 per month: BankBazaar

But it is still to be seen how banks respond to this RBI rate cut and how soon they give relief to home and personal loan borrowers.

 » Read More

Related Articles

March 2025 Tax Alert: Miss these deadlines and you could lose exemptions, face fines

March 31 is the last day of the financial year, which is considered a very important date for taxpayers and investors. If you have not yet made the necessary investments to save tax or some important financial work is pending, then it is very important to settle them this month. Whether it is taking advantage

Loan Against Mutual Funds: How it works & what you should know

Investing in mutual funds can significantly contribute to wealth accumulation over time. Interestingly, these investments can also serve as collateral for securing a loan. Lenders may consider your mutual fund holdings as a guarantee, allowing you to obtain loans at competitive interest rates. Prior to approving the loan, lenders will evaluate the value of your

Paytm Money receives SEBI nod to offer research services, shares surge

Shares of One 97 Communications Ltd, the parent company of Paytm, surged up to 7.54 per cent at 11:30 am on Tuesday to a trading price of Rs 740.75 after its subsidiary Paytm Money received green light from the Securities and Exchange Board of India (Sebi) to offer services as a research analyst. With this

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

March 2025 Tax Alert: Miss these deadlines and you could lose exemptions, face fines

March 31 is the last day of the financial year, which is considered a very important date for taxpayers and investors. If you have not yet made the necessary investments to save tax or some important financial work is pending, then it is very important to settle them this month. Whether it is taking advantage

Loan Against Mutual Funds: How it works & what you should know

Investing in mutual funds can significantly contribute to wealth accumulation over time. Interestingly, these investments can also serve as collateral for securing a loan. Lenders may consider your mutual fund holdings as a guarantee, allowing you to obtain loans at competitive interest rates. Prior to approving the loan, lenders will evaluate the value of your

Paytm Money receives SEBI nod to offer research services, shares surge

Shares of One 97 Communications Ltd, the parent company of Paytm, surged up to 7.54 per cent at 11:30 am on Tuesday to a trading price of Rs 740.75 after its subsidiary Paytm Money received green light from the Securities and Exchange Board of India (Sebi) to offer services as a research analyst. With this

Heatwave fuels growth for AC Industry- 3 key factors watch now

The heatwave may not be good news for you but the AC industry is rejoicing… It is expected to deliver robust volume-led growth in Q4FY25 on the back of early onset of the summer coupled with aggressive channel stocking.  The Indian Meteorological Department has predicted above-normal number of heatwave days in most parts of the

Bajaj Finserv slips 2%; Bajaj Group buys out 26% Allianz stake in insurance JV

Bajaj Finserv’s share price fell 1.8% to an intra-day low of Rs 1,837. The stock was the major loser in the Nifty 50. The fall in share price came after Bajaj Group signed a share purchase agreement with Allianz SE to buy out its stakes in the joint ventures.  The company will acquire a 26%