RBI MPC has cut interest rates after 5 years. On 7 February 2025, RBI MPC reduced the base of three days meeting by 0.25 percent. After this cut, the repo rate has been reduced from 6.50 percent to 6.25 percent. The last time repo rate cut was seen in May 2020. Whereas from May 2022 to February 2023, he increased by 2.50 percent. After that there was no change for two years.
After this cut, there will be a lot of relief in the loan EMI of common people. Now banks will also have to cut the interest rates of home loan. Due to which the home loan EMI of common people will be reduced. Which he had been waiting for a long time. Now the biggest question is, how will the EMI of the home loan of common people be reduced?
You can try to understand this entire process as less a calculation. Currently, SBI's highest interest rate on home loan is 9.65 percent. Now that interest rates have been cut by 25 basis points. So the interest rates of SBI's home loan can appear at 9.40 percent. For this, we have taken home loan of 25 lakh, 40 and 50 lakh rupees. Which will try to understand your EMI at 9.65 percent and 9.40 percent.
Suppose you had taken a home loan of Rs 25 lakh from SBI for 20 years at 9.65 percent interest rate at Rs 23,549 on EMI. Now after cutting the repo rate by 25 basis points, the interest rate will be reduced to 9.40 percent. On which you will now have to pay an EMI of Rs 23,140. That is, your EMI will be reduced by 409 rupees.
At the interest rate of 9.65 per cent on home loan of Rs 40 lakh for 20 years, Rs 37,678 will have to be paid EMI. But after a reduction of 0.25 percent in the repo rate, interest will have to be paid at a rate of 9.40 percent, on which Rs 37,024 EMI will have to be paid. That is, the burden of 654 rupees will be less than your pocket every month.
For 20 years, at the home loan of Rs 50 lakh, he was giving EMI at the rate of 9.65% at the rate of 9.65%. But after the repo rate cut, your loan EMI will be Rs 46,281. This means that you will get an advantage of Rs 816.
