Home loan EMI reduction in India: The Reserve Bank of India has once again given good news to banks and loan holders. The RBI has cut the repo rate by 25 basis points, resulting in significant benefits for financial banks and borrowers. Loan rates are now expected to decline.
Speculation is rife that banks may soon announce lower interest rates. After the reduction, the repo rate has now dropped from 5.50% to 5.25%. This is the fourth consecutive time the Reserve Bank has cut the repo rate. Those with existing home loans will see their EMIs reduced. Therefore, you need to calculate the EMI amount for a home loan of ₹30 lakh. You can understand this calculation below.
How much EMI will be required for a loan of ₹30 lakh?
The last month of 2025 brought good news for the countrymen. The RBI has cut the repo rate by 0.25%, making home loans cheaper. If you already have a home loan, this will also impact EMIs.
If someone has a 20-year loan of ₹30 lakh, their EMI will be reduced by a few rupees. At a 5.50% interest rate, their monthly EMI on this amount would have been around ₹20,625. Now, the repo rate has dropped to 5.25%, reducing the EMI to ₹20,350.
The monthly EMI savings will be ₹275. If calculated over a year, the savings will be approximately ₹3,300. This means that borrowers will gradually start to benefit from this.
Experts believe that the repo rate cut will benefit not only home loans but also auto and personal loan EMIs. This will reduce the burden on customers’ pockets and may also increase market demand.
The inflation forecast was also cut.
The Reserve Bank of India raised its economic growth forecast for the current fiscal year from 6.8 per cent to 7 per cent. In addition, the inflation forecast has been reduced from 2per cent to 1 per cent. The year 2025 has proven to be quite beneficial for loan holders. So far this year, the repo rate has been cut by a total of one per cent.
