Big Relief for Home Loan Borrowers? RBI Rate Cut Likely on Feb 6

The Reserve Bank's monetary policy meeting on February 6 is expected to cut the repo rate by 0.25%. This article explains how to fully get the financial benefits of the rate cut.

RBI Repo Rate

The country's economy has reached a crucial stage. The RBI's meeting on Feb 6 has created huge expectations. Economists suggest a 0.25% repo rate cut is likely.

RBI Interest Rate Cut

RBI's main challenge is balancing inflation control and growth. Experts believe RBI may cut the repo rate to 5.25% to boost consumer spending and investment.

Repo Rate Cut

A repo rate cut directly impacts home loans. For a Rs. 50 lakh loan at 9% for 20 years, a drop to 8.75% saves about Rs. 800 monthly, totaling Rs. 1.9 lakh in interest.

Home Loan

You can choose to lower your EMI or keep it the same to reduce the loan term by 10-12 months, saving over Rs. 4 lakh. To lower the EMI, you must contact your bank.

Monetary Policy Decision

The RBI is also focused on increasing market liquidity. Despite global tensions, the Feb 6 decision will be crucial for the financial planning of home loan borrowers.