RBI Repo Rate Cut: Home Loan EMIs Could Drop, Fueling Housing Demand

• RBI cut the repo rate by 25 basis points to 5.25%, making home loans more affordable for borrowers.
• This reduction could lower EMIs (e.g., ₹3,872 on a ₹50 lakh loan) or allow borrowers to shorten loan tenures, saving significant interest.
• Floating-rate home loans linked to the repo rate will see faster transmission of benefits, boosting credit demand and market liquidity.
• The rate cut is expected to boost housing demand across all segments, including mid-income and premium, and improve real estate market sentiment.
• Developers anticipate increased sales, faster project execution, and better liquidity management due to the reduced borrowing costs.

Why It Matters: RBI's rate cut reduces home loan EMIs, making housing more affordable for buyers.