RBI Cuts Rates: How Much Your EMI Drops?

RBI has cut the repo rate from 6.5% to 6.0% in 2025, meaning floating home loan EMIs should fall. But your bank may not pass on the full benefit automatically — you need to act.

Here's what happened: RBI cut the repo rate by 50 basis points in 2025, bringing it down from 6.5% to 6.0% in two tranches.. Floating rate home loans linked to EBLR (External Benchmark Lending Rate) must be repriced within 3 months of any RBI rate change.. Despite RBI cuts, several banks have been slow or partial in passing the full reduction to existing borrowers..

What you should do: Call your bank and ask for your current loan interest rate — confirm it reflects the latest repo cut.. Compare your existing rate against new borrower rates online; if the gap exceeds 0.5%, request a rate reset or consider balance transfer.. Use an EMI calculator to see your new monthly outgo on your outstanding principal — a lower rate on the same tenure means real monthly savings..

Banks must reset EBLR-linked loans within 3 months — but they often wait until your reset date. Ask your bank to apply the revision immediately; many will oblige to avoid losing you to a competitor.