Small Home Loan Rate Cuts: Unlocking Lakhs in Long-Term Savings

• Minor home loan rate cuts (0.05-0.10%) are often underestimated but yield significant long-term savings due to decades-long tenures.
• Long loan tenures amplify small rate changes; monthly interest calculations mean minor reductions accumulate into lakhs over time.
• Lenders often keep EMI constant, reducing loan tenure instead, leading to earlier repayment and substantial total interest savings.
• Rate cuts are most impactful in early loan years when a larger portion of EMI goes towards interest, maximizing overall savings.
• Floating rate borrowers automatically benefit from rate adjustments; fixed-rate borrowers need to refinance for similar advantages. Borrowers should check how lenders apply cuts.

Why It Matters: Small home loan rate cuts, though seemingly minor, quietly accumulate into substantial savings over the loan's long tenure.