How Much Will Home Loan EMI Drop After RBI's Repo Rate Cut
New Delhi:
If you have a home loan, your EMI is set to reduce by over Rs 1,500 a month thanks to the Reserve Bank of India's latest move. With the central bank cutting the repo rate by 50 basis points -- from 6 per cent to 5.5 per cent -- banks are expected to lower interest rates on loans.
For a Rs 50 lakh home loan over 20 years, this could mean monthly savings of Rs 1,569 and annual savings of nearly Rs 19,000, offering much-needed relief to borrowers amid high living costs.
The repo rate is the interest rate at which the RBI lends money to commercial banks. A reduction in this rate makes borrowing cheaper for banks, which in turn allows them to offer loans to customers at lower interest rates.
This directly impacts borrowers, especially those with home loans linked to repo-based lending rates (RBLR).
Let's break this down with a practical example. Suppose you have a home loan of Rs 50 lakh at an interest rate of 8.5 per cent for a tenure of 20 years.
Your monthly EMI in this case would be around Rs 43,391. Now, after the 50 basis points cut in the repo rate, if the bank reduces your interest rate to 8 per cent, your new EMI would come down to approximately Rs 41,822.
Gaurav Gupta, Secretary of CREDAI (Confederation of Real Estate Developers' Associations of India), welcomed the RBI's monetary decision, saying that the rate cut will help reduce borrowing costs for home buyers. Beyond just lowering monthly payments, it will improve housing affordability across the country.
He further added that a drop in interest rates not only benefits individual buyers but also boosts overall sentiment in the real estate sector, which positively impacts multiple industries connected to it.
Importantly, it's not just home loans that will get cheaper -- personal loans, auto loans, and other types of retail borrowing will also see reduced EMIs as a result of lower interest rates.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
28 minutes ago
- Time of India
Fly ash brick prices up due to raw material costs
Indore: A significant increase in raw material costs led to a price hike of 0.50 paise per piece in fly ash bricks across Indore, lifting the overall building costs for homeowners and construction companies. The surge primarily stems from the rising costs of stone crusher dust and other essential materials used in the manufacturing process. The revised cost of fly ash bricks in Indore is Rs 6.50 per piece. Now the cost of a small truckload carrying 2,000 flyash bricks will be dearer by Rs 1,000. Vijay Gandhi, a builder and member of Confederation of Real Estate Developers' Associations of India (CREDAI), Indore said, "Any jump in the input cost directly impacts the building cost. In Indore fly ash is used in around 30-40 per cent projects and red bricks are used widely in Indore due to its easy availability." The robust manufacturing base has established Indore as a significant hub for fly ash brick production in the region. According to industry data, Indore's fly ash brick manufacturing units produce approximately 20 lakh pieces daily. The majority of this production serves the local market, with most supplies being consumed within the city and a 20-kilometre radius. Abhishek Purohit, vice president, Fly Ash Brick Manufacturers Cooperative Society Ltd, said, "The association members unanimously decided in a meeting that due to the rising costs of gravel and stone crusher dust used in the production of fly ash bricks, the price per brick will be increased by 0.50 paise. These revised rates will be implemented immediately." The city hosts over 200 fly ash brick manufacturers, forming a substantial industrial segment. These units collectively require around 6,000 tonnes of fly ash per day to maintain their production levels. Industry experts suggest that this price increase could impact ongoing and planned construction projects in the area. Small-scale builders and individual homeowners might need to revise their budgets to accommodate these higher material costs. "Local manufacturers are working to maintain steady production levels while managing increased operational costs, but this has resulted in squeezed margins. Fly ash bricks offer an eco-friendly alternative to traditional clay bricks, and despite the price increase, these bricks remain an essential building material," said Gaurav Mohta, president, of the association. Fly ash manufacturers highlighted challenges related to logistics and timely transportation of fly ash to end-users.
Time of India
43 minutes ago
- Time of India
CM flying squad to probe MCM sanitation contract
Gurgaon: The CM flying squad has initiated an investigation into MCM's sanitation contract with Akanksha Enterprises, demanding documents such as tender details, contractor payments, and supervision records. The probe follows MCM's recent Rs 9.2 crore penalty on the contractor for inadequate service delivery. The contract, initially valid till Feb 2025, was extended to May. "A letter was sent to the MCM officials seeking details of the contract so that the CM flying squad could probe the matter. The civic body was given a week's time to probe the matter," said a ULB official privy to the matter. The contractor submitted an invoice of Rs 13.2 crore for services rendered during these three months. The representative of Akanksha Enterprises, Shishpal Rana, could not be reached despite repeated attempts by TOI. In April, the company also faced a Rs 4.3 crore penalty, during which they alleged bribery among senior MCM officials and payment delays, leading to the transfer of the then MCM commissioner. A sanitation standing committee reviewed the work of the agency between Feb 20, 2025, and May 19, 2025. A meeting was held on June 4 when the committee recommended deducting over Rs 9.17 crore from the agency's Rs 13.17 crore bill, approving only Rs 3.9 crore for payment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo According to state govt-sanctioned estimates derived from central public health and environment engineering standards (SWM manual of CPPHEO norms, 20216) and the project's request for proposal (RFP), the agency was required to supply 1,997 personnel, 96 tractor trolleys, 468 rickshaw carts, and four earthmovers for sweeping roads in the MCM area. The urban local bodies (ULB) department stipulated that all SWM payments would be processed via the SWM monitoring portal starting Jan 2025. The committee observed a significant gap between the actual deployment figures shown on the SWM portal. It revealed personnel shortfalls of 1,315 in Feb, 1,355 in March, 1,533 in April, and 1,284 in May. Regarding equipment deployment, the committee's review showed that the agency provided only 101 rickshaw carts instead of the required 468 and merely 38 tractor trolleys against the specified 94, indicating substantial shortages in equipment provision for their work in the MCM area for three months.
Time of India
43 minutes ago
- Time of India
Tour operator told to refund elderly couple for cancelled tour in Covid times
Ahmedabad: A consumer commission here has ordered a tour operator to refund the full amount with interest, along with Rs 55,000 compensation, to an elderly couple whose tours to Japan and Europe could not take place due to the Covid-19 pandemic. Tired of too many ads? go ad free now The couple was reluctant to go to the UK, Ireland, and Scotland upon the operator's insistence three years later. This case involved Asha and Yogesh Doshi, residents of the Ambawadi area, who paid Rs 5.30 lakh in 2019 to Mumbai-based Neem Holidays Pvt Ltd for two tours — Japan and Europe in 2020. Due to the Covid pandemic, the tours were cancelled. When normalcy returned, they requested the same tour package, but the operator could not arrange it. Considering that people were still reeling under financial stress due to Covid, the couple did not demand their money back. In 2022, the tour operator offered them a 13-day package for Australia. They agreed and paid Rs 10,000 extra, but this did not take place. A year later, the operator offered the couple a tour to the United Kingdom. The couple refused this trip, yet their tickets were booked. They requested the company not to force them to accept this package tour and demanded their money back. As the operator did not respond, the couple sued it with the District Consumer Dispute Redressal Commission, Ahmedabad City to get the refund. The operator's lawyer appeared, but the reply was not filed. The commission said that since the money was lying with the operator, the complainants did not have any choice but to agree to the unreasonable request. However, compelling them for another tour against their wish was harassment. Tired of too many ads? go ad free now "The complainant's money has been wrongfully withheld by the opponent, and therefore the complainants are entitled to receive the full money of the package tour from the opponent," it said. The commission ordered the operator to return Rs 5.40 lakh with 8% interest, along with Rs 55,000 extra towards compensation for causing "physical harassment and mental agony" and towards the expenditure the couple incurred on litigation.
