Financial Express-Good News for Home Loan Borrowers: EMI on Rs 50 lakh loan may drop by Rs 3,190 in 2025, feel experts
Home loan borrowers may expect some relief in the form of lower EMIs starting from the RBI’s February monetary policy review next year. Experts believe that the Reserve Bank is likely to ease its key interest rate, known as the repo rate, by at least 25 basis points during its February monetary policy meeting, scheduled shortly after the presentation of the Union Budget 2025-26.
The RBI is scheduled to hold six Monetary Policy Committee (MPC) meetings in 2025, in February, April, June, August, October, and December. Experts predict that the central bank could cut the repo rate in at least four of these meetings, reducing it by 25 basis points each time, for a total reduction of 100 basis points. A 100-basis-point repo rate cut by the RBI during the year would bring significant relief to loan borrowers, as banks are expected to follow suit by lowering lending rates, making loans more affordable.
