The Reserve Bank of India (RBI) under new governor Sanjay Malhotro reduced the policy repo rate by 25 bps to a staggering 6.25% from the previous 6.50%. The move is expected to lower home loan interest rates and benefit homebuyers.
How does it impact EMIs?
Let's understand this with an example. Suppose you took a home loan of Rs 50 lakh at an interest rate of 8.75 per cent for 00 years. With this decision, it is expected to come down to 8.50.
EMI per month with 8.75% interest rate - 39,335
EMI per month with 8.50% interest rate - 38,446
So the total saving per month would be - Rs 889
