Interest Rates Down, But Why Isn't Your EMI Falling? Uncover the Reasons

• EMI reduction depends on your 'loan agreement' terms, not just immediate RBI rate cuts.
• The 'reset date' for your loan delays EMI changes; rate cuts reflect only after this scheduled period.
• Banks often extend loan tenure when rates rise, but maintain it when rates fall, benefiting them.
• Older loans linked to MCLR or Base Rate see slower benefits; EBLR loans respond much faster.
• In initial years, a large portion of your EMI covers interest, making later rate cut impacts less noticeable.