RBI's rate cut: Rs 2.81 Lakh savings on Rs 75 Lakh home loan, how much less EMI to expect

2025 is going to be a great year for home loan borrowers, starting with a 25 basis point cut in the repo rate by the RBI. Now, the central bank has announced another 25 basis point rate cut. This means that home loan borrowers, especially those with floating-rate home loans, will see a significant reduction in their EMIs in the coming days.

Interest on their home loans may come down

In the coming days, lenders will start giving the benefit of this rate cut. With the fresh cut, the repo rate has now gone up to 6 per cent. Further, the RBI Governor announced a change in the stance of the Forestry Policy from Neutral to Accommodative. Due to the change in stance, home loan borrowers may see further cuts in the repo rate in the future and as a result, the interest on their home loans may come down.

Objective of lowering the policy rate is to render borrowing cheaper

According to experts, the Reserve Bank of India has cut the repo rate by 25 basis points to 6 per cent as part of its continuous efforts to increase consumption and accelerate economic growth. The aim of reducing the policy rate is to make borrowing more affordable. This can increase investment in real estate and demand can be seen in the housing sector. However, the impact of this rate cut will largely depend on the speed with which commercial banks cut their home loan interest rates.

The biggest question is how much relief will the common people get on home loan EMI from this cut of repo rate. Let's try to understand this with the SBI Home Loan Calculator. For this, how much relief can we get on the EMI of 20-year home loan of 50 lakh, 75 lakh and 90 lakh. At present, SBI's home loan interest rate is 8.25 percent. RBI has cut 0.25 percent. In such a situation, the interest rate can be estimated at 8 percent.

How much will the EMI be reduced on a home loan of 50 lakhs

Suppose you had taken a home loan of Rs 50 lakh for 20 years from SBI at an EMI of Rs 42,603 at an interest rate of 8.25 per cent. Now after the reduction of 25 basis points in the repo rate, the interest rate will come down to 8 percent. On which you will now have to pay EMI of Rs 41,822. That is, Rs 781 will reduce your EMI. This means that in 20 years you will get a benefit of Rs 1,87,440 on the home loan.

How much relief did you get on a home loan of Rs 75 lakh?

A home loan of Rs 75 lakh for 20 years currently costs an EMI of Rs 63,905 at an interest rate of 8.25 per cent. But after a 0.25 per cent reduction in the repo rate, interest will have to be paid at the rate of 8 per cent, on which EMI of Rs 62,733 will have to be paid. That is, the burden of Rs 62,733 every month will be less than your pocket. In 20 years, you will save a total of Rs 2,81,280.

How much will the EMI be for a home loan of 90 lakhs?

If you were paying an EMI of Rs 76,686 at the rate of 8.25 per cent on a home loan of Rs 90 lakh for 20 years. Now your loan EMI may be reduced. RBI has cut the repo rate and the interest rate on home loans will be 8 percent. After which your home loan EMI will be reduced to Rs 75,280. This means that you will gain Rs 1,406. This means that you will have a savings of Rs 3,37,440 in 20 years.