Here’s how you can save on interest after RBI’s repo rate cut

The RBI’s recent 0.5% repo rate cut to 5.5% brings relief to home loan borrowers by lowering monthly EMIs. Most new home loans in India are linked to the repo rate through the Repo Linked Lending Rate (RLLR) system, meaning you’ll likely see reduced interest rates soon. For example, a 20-year home loan could see its EMI drop significantly, putting extra cash in your pocket each month. Larger loans will yield even bigger savings (see graphic). Banks like Canara or UCO have already cut rates to 7.75%, but some private banks may take a few months to pass on the full benefit, so check with your lender. With reduced EMIs, you can use the extra money for daily expenses, savings, or paying off your loan faster to save more interest. To make the most of this, confirm the rate cut has been applied to your loan and consider increasing your EMI slightly to shorten the loan term.

Interest savings after RBI repo rate cut
Interest rates fall, EMIs shrink, and long-term savings grow for home loan borrowers.