Home Loan Borrowers Get Good News: Save Lakhs in Interest with Refinancing

• Refinancing (balance transfer) home loans to a bank offering lower interest rates can save significant amounts.
• RBI's repo rate cuts (125 bps between Feb-Dec 2025) were not fully passed on by all banks, especially NBFCs.
• Since Oct 2019, new floating-rate home loans are linked to external benchmarks, ensuring rate cut benefits.
• Even a 0.5% interest rate difference can save lakhs over the loan tenure; consider switching if the difference is significant.
• Borrowers can also opt for rate conversion within their current bank by paying a fee, if refinancing is difficult.

Why It Matters: Refinancing or converting home loans can lead to substantial interest savings, especially with rate differences.