EMI Burden Eased: How Banks Reduced Loan Rates After RBI Repo Rate Cut
The Reserve bank of India (RBI) recently announced a 25 basis point cut in the repo rate, and its impact is now visible for borrowers. Several banks have reduced their interest rates, making loans cheaper and lowering EMI burdens.1️⃣ RBI’s Repo Rate Cut· RBI reduced the repo rate by 0.25%, aiming to stimulate economic growth.· Repo rate is the rate at which banks borrow money from RBI, and changes affect loan interest rates for customers.2️⃣ Banks That Reduced Rates· Following the announcement, major banks quickly adjusted their lending rates.· Reductions were seen in:o Home loanso Personal loanso Auto loans· Exact reductions vary by bank and loan type.3️⃣ Benefits for Borrowers· Lower EMIs for existing and new loans.· Increased disposable income as monthly loan payments decrease.· Encourages new borrowing and spending, boosting economic activity.4️⃣ How Much Rates Dropped· Interest rate cuts generally range from 0.10% to 0.25%, depending on the bank and product.· Some banks have passed the full 25 basis points cut to customers, while others implemented partial reductions.📌 Quick TakeawayThe RBI repo rate cut has directly benefited borrowers, reducing EMIs and making loans more affordable. It’s a good time for those planning home loans, personal loans, or car loans to check updated rates across banks. Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.