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The cut in interest rates by RBI may prompt lending institutions to reduce home loan interest rates for those with floating rate loans. Hence the borrower can choose to change either the loan tenure or the EMI.
The three-day meeting of the Monetary Policy Committee of the Reserve Bank of India has ended. After this meeting, the public was expected to get relief on many fronts but this has not happened. The Reserve Bank has not made any change in home loan rates after the Monetary Policy Committee meeting.
You will get these benefits if interest rates are cut
The cut in interest rates by RBI may prompt lending institutions to reduce home loan interest rates for those with floating rate loans. Hence the borrower can choose to change either the loan tenure or the EMI. It is also possible for borrowers to transfer the loan to another financial institution that offers new and possibly lower rates. However, your personal credit score also plays a role in deciding the interest you will be charged.
According to a Moneycontrol report quoting economists, the central bank is likely to cut the interest rate by 50 basis points (bps) in two installments, most likely in December 2024 and February 2025. The repo rate remains completely unchanged at 6.5% through February 2023, making this the tenth consecutive meeting of the RBI MPC where the rates have remained unchanged. However, the central bank changed its policy stance from 'withdrawal of favourability' to 'neutral'.
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