RBI MPC has cut interest rates after 5 years. On 7 February 2025, RBI MPC cut the rate by 0.25 percent after a three-day meeting. After this cut, the repo rate has come down from 6.50 percent to 6.25 percent. The last time the repo rate was cut was seen in May 2020. Whereas from May 2022 to February 2023, there was an increase of up to 2.50 percent. After that no change was made 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 loans. Due to which the home loan EMI of common people will be reduced. For which they were waiting for a long time. Now the biggest question is how will the home loan EMI of common people be reduced?

You can try to understand this whole process with a calculation. At present, SBI charges the highest interest rate of 9.65 percent on home loans. Now that the interest rates have been cut by 25 basis points, SBI home loan interest rates can be seen at 9.40 percent. For this, we have taken the data of home loans of Rs 25 lakh, Rs 40 lakh, and Rs 50 lakh. We will try to understand your EMI at the rate of 9.65 percent and 9.40 percent.

How much less will be the EMI on a home loan of Rs 25 lakh?

Suppose you had taken a home loan of Rs 25 lakh from SBI for 20 years at an EMI of Rs 23,549 at the rate of 9.65 percent interest. Now after the cut of 25 basis points in the repo rate, the interest rate will come down to 9.40 percent. On which now you will have to pay an EMI of Rs 23,140. That is, your EMI will be reduced by Rs 409.

How much relief is there on a home loan of Rs 40 lakh

For a home loan of Rs 40 lakh for 20 years, at an interest rate of 9.65%, you will have to pay an EMI of Rs 37,678. But after a 0.25% cut in the repo rate, you will have to pay interest at the rate of 9.40%, on which you will have to pay an EMI of Rs 37,024. That means the burden of Rs 654 will be reduced from your pocket every month.

How much will be the EMI for a home loan of Rs 50 lakh?

For a home loan of Rs 50 lakh for 20 years, you were paying an EMI of Rs 47,097 at the rate of 9.65%. But after the cut in the repo rate, your loan EMI will become Rs 46,281. This means that you will get a benefit of Rs 816.

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