RBI Cuts Repo Rate by 0.25%: EMI Relief for Home, Car Loans

• RBI reduced the repo rate by 0.25%, aiming to ease financial burden on middle-class borrowers.
• This cut is expected to reduce EMIs for home, car, and personal loans.
• For a Rs 20 lakh loan over 20 years, EMIs could decrease by Rs 310 monthly, saving Rs 74,000 in total interest.
• The rate cut benefits both existing floating-rate borrowers and those taking new loans.
• Banks' full transmission of benefits to customers via MCLR remains to be seen, despite RBI's cumulative rate cuts.

Why It Matters: RBI's repo rate cut directly lowers loan EMIs, impacting personal finances.