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BEST INTEREST RATES
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BEST INTEREST RATES
The RBI’s latest move has created a buzz across India’s lending market — a 25 basis points repo rate cut, bringing the key lending rate down to 5.25 percent. Whenever the RBI cuts the repo rate, borrowers immediately start calculating how this will impact their monthly EMIs, home loans, and long-term financial plans.
If you’re planning to borrow, refinance, or check how much you can save, this update matters. And yes, it directly affects the numbers you see on your Home Loan EMI Calculator and Personal Loan EMI Calculator.
Let’s break everything down in a simple, practical way.
The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends short-term funds to commercial banks.
When the RBI reduces this rate, banks can borrow money at a cheaper cost. Ideally, this leads to lower lending rates for customers across home loans, business loans, mortgages, and personal loans.
To understand the repo rate in detail, you can refer to the official RBI resource here:
🔗 https://www.rbi.org.in
The rate cut comes amid multiple economic signals:
This 25 bps reduction is part of the RBI’s strategy to boost economic activity, ease borrowing, and support India’s growth environment.
1. Home Loan Borrowers Benefit First
When the repo rate falls, home loan EMIs are the first to react — especially if your loan is linked to an external benchmark like RLLR or EBLR.
Use this opportunity to recalculate your new EMI here:
👉 Home Loan EMI Calculator
Even a small EMI drop over a long duration (15–25 years) creates significant future savings.
2. Lower Rates for Mortgage Loan & Loan Against Property
For borrowers taking a loan against property, the reduced rate can lower borrowing costs and improve liquidity.
Compare your new potential EMI here:
👉 LAP EMI Calculator
Businesses can access funds for expansion, working capital, or operations at a more comfortable interest rate.
3. Personal, Auto & Business Loans May Become Cheaper
While unsecured loans don’t react instantly, banks often adjust personal loan, auto loan, and business loan rates when the repo rate drops.
Check your estimated EMI for:
👉 Personal Loan EMI Calculator
👉 Business Loan EMI Calculator
Common use cases include:
1. Higher Consumer Confidence
Lower rates make big purchases more affordable:
More spending fuels market growth.
2. Strong Support for MSMEs & SMEs
Small businesses depend heavily on loans. Lower interest rates help them:
This aligns with the government’s vision for MSME growth.
3. Better Investment Sentiment
Lower borrowing costs often stimulate investments in:
It creates a cycle of fresh investment and economic momentum.
Banks don’t always pass on repo rate cuts immediately. Some reasons include:
But now that most lenders follow EBLR, the transmission is faster and more transparent than before.
If you’re planning to:
Then this rate environment is favorable.
Before proceeding, always compare banks, and check your revised EMIs through our calculators:
A strong credit score means:
You can use our Free Credit Check to know where you stand before applying:
👉 Free Credit Score Check
The RBI’s 25 bps repo rate cut to 5.25 percent is a positive signal for both consumers and the economy. Borrowers can take advantage of cheaper loans, better balance transfer opportunities, and improved affordability.
A small shift in the repo rate can make a big difference — and now is a smart time to analyze your borrowing plans.
