RBI Order to Banks- If you are a loan holder, interest rates will be reduced, and the benefits have already begun to accrue. Some banks are not yet passing on the benefits to their customers, but the RBI has issued strict instructions. Following the implementation of the new repo rates, the RBI has issued guidelines for banks to pass on the benefits to customers.

This time, the repo rate was cut by 0.25 per cent, bringing the rate down to 5.25 per cent. Following this RBI decision, many banks, including HDFC, PNB, and Axis Bank, have reduced their loan interest rates. Other banks will soon implement this decision. This will significantly reduce your loan EMI.

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Some major banks have reduced interest rates.

Following the RBI order, some banks have reduced their loan interest rates. After the reduction, the interest rates for all banks have fallen between 7 per cent and 8per cent. The Reserve Bank of India (RBI) has provided significant relief to both banks and ordinary citizens by cutting the repo rate several times. Since the beginning of 2025, the repo rate has fallen by a total of 1.25%.

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After these cuts, the repo rate now stands at 5.25%. This will result in a slight reduction in the EMI of a home loan up to ₹40 lakh. Previously, the interest rate on this loan was 8.15%, resulting in an EMI of ₹33,832 per month. However, now the interest rate is 7.90%, resulting in an EMI of ₹33,209.

How much has the repo rate decreased throughout the year?

The year 2025 is about to end. Consequently, the RBI has cut the repo rate several times throughout the year. Consequently, the repo rate has been reduced by a total of 1.25% since the beginning of 2025. After these cuts, the repo rate has now reached 5.25%. How much has your EMI reduced?
If you have a home loan of Rs 40 lakh, how much has your EMI reduced accordingly? Let’s understand.

How to Reduce Your Loan After the Repo Rate Reduction, on

If, for some reason, your loan is on a floating rate, ask the bank in writing that they can reduce the interest rate according to the new repo rate. This will immediately reduce your EMI. I, for some reason, on your bank, is not reducing rates; you can transfer the loan to another bank.

At the same time, the lower interest rate at the new bank will directly save you on EMI. Additionally, you will have to pay a portion of the loan with the additional amount. This will significantly reduce the interest burden, and the loan will be repaid soon.