[ad_1]
Home loan borrowers have a big reason to cheer! The Reserve Bank of India (RBI) has cut the repo rate by 25 basis points – the second time in this calendar year. The repo rate now stands at 6%, down from 6.5% at the start of this year.
How does the repo rate impact loan borrowers? The logic is simple – repo rate is the rate at which the RBI lends money to the banks. When the cost of borrowing comes down for banks, the aim of the central bank is that it would be passed on to the loan borrowers in the form of lower lending rates. So a 50 basis points repo rate cut should ideally mean that the interest rate on your loans would come down by half a percentage point.
However, the actual transmission of rate cuts works with a lag, and it usually takes a few months for loan borrowers to see a benefit in the form of lower EMIs
Repo rate cut: What will be the impact on your EMI?
Adhil Shetty, CEO, BankBazaar.com notes that home loan rates are about to go sub-eight again with today’s 25 basis points rate cut. The lowest rates we’re currently seeing are between 8.10 and 8.35, he says.
So how much money will you save?
- As per calculations in the table above, if the interest rate comes down from 8.5% to 8% (two consecutive repo rate cuts of 25 bps each), for a loan of Rs 10 lakh, the EMI savings would be Rs 314, and the total interest savings would be Rs 75,320/-
- For a Rs 50 lakh loan the EMI savings would be around Rs 2,354 and the total interest savings would be Rs 564,897/-
Source: BASIC Home Loan
However, Shetty points out that the lowest rates are typically reserved for prime borrowers (credit score > 750) and refinance cases.
“Homeowners paying a substantially higher rate (50 bps or higher above prevalent rates) are advised to refinance their loans to avail lower rates. Do note that automatic, immediate and full rate cuts are available only on repo-linked home loans offered by banks,” he says.
“Despite six years of repo-linking, we see that only 50% of floating rate loans with government banks are still linked to the MCLR and 2% to Base Rate. Borrowers with these banks are advised to take stock of their older loan benchmark and consider a refinance to a repo-linked home loan if it helps them save interest outflows,” he adds.
Atul Monga – CEO & Co-Founder, BASIC Home Loan says that the actual benefit to consumers will depend on how quickly financial institutions pass on these rate cuts. “It’s crucial for banks to transmit these benefits promptly to ensure that the intended economic stimulation reaches the end-users effectively,” he says.
Home Loan EMIs: Important Points to Note
- Santosh Agarwal, CEO, Paisabazaar points out that the transmission of this repo rate cut would be faster in case of floating rate loans linked to repo rate. However, the exact date of transmission of rate cuts to the existing borrowers would depend on the reset dates of their interest rates set by their respective lenders. Till then, they will continue to repay their loans as per the existing rates.
- In case of loans linked to MCLR or other internal benchmarks, transmission may take longer as the cost of funds of the banks plays a major role in determining their internal benchmark rates.
- The reduction in the repo rate, backed by the favourable liquidity conditions in the banking sector, should help banks further reduce the rates of their FDs and other liability-side fund sources. This should result in quicker reduction of cost of funds for the banks and thereby, allow a more effective transmission of policy rate cuts in loans linked to internal benchmarks.
[ad_2]
Source link
About the author
Costume Designer Amritha Ram on designing Kamal Haasan’s unconventional look in ‘Thug Life’: ‘He’s always done what others don’t’ – Exclusive | Tamil Movie News
[ad_1] Amritha Ram discusses her creative journey designing costumes for Kamal Haasan in Mani Ratnam's 'Thug Life.' She highlights the collaborative process with Ratnam, whose precise vision guided the film's unique aesthetic, diverging from typical commercial styles. Ram details the evolution of Haasan's wardrobe across three distinct stages, emphasizing minimalism and character-driven choices, particularly in the Delhi and Nepal looks. Costume designer Amritha Ram has worked with Kamal Haasan on multiple projects, but Thug Life—directed by the legendary Mani Ratnam—offered a creative journey like no other. In this exclusive chat with ETimes, she opened up about building the layered wardrobe for Kamal’s complex character, working closely with Mani Ratnam’s precise vision, and how the film’s aesthetics stand apart from typical commercial fare. Excerpts...What was the most exciting challenge about designing for Kamal Haasan in Thug Life under Mani Ratnam's direction?The […]
If It Happened There: Donald Trump sends central troops to quell protests in opposition-ruled California | World News
[ad_1] Protesters confront police on the 101 Freeway near the Metropolitan Detention Center of downtown Los Angeles, Sunday, June 8, 2025, following last night's immigration raid protest. (AP Photo/Jae C. Hong) Note: The following piece is inspired by Joshua Keating’s If It Happened There which uses tropes and tones normally used by American media to describe events in other countries. The facts presented deal with as much exactitude and accuracy as an American media outlets’ reporting about a foreign country.Los Angeles, Mexican for the city of angels, is home to Hollywood – America’s answer to Bollywood – and a city where starstruck aspirants come with the dream of being immortalised on the silver screen. Yet, the city, which falls under America-administered California, an opposition state which overwhelmingly voted for Mr Donald Trump’s rival from the Democratic Party, Ms Kamala Harris, […]
Apple prepares for new ‘Games’ app as domain goes live ahead of WWDC 2025 keynote
[ad_1] Apple is expected to launch iOS 19 (or rumoured iOS 26) and one of new features that is reported to come is a new Apple Games app. Apple appears to be laying the groundwork for this new application, which is said to curate games from the App Store and Apple Arcade, as a domain purportedly leading to the platform has gone live.As per a report by 9to5mac, the company's new games.apple.com domain has just gone live. However, it is currently displaying a blank page, signaling imminent content.This shift from a "Safari Can’t Find The Server" error message to a blank white page strongly suggests Apple is preparing to push content to the URL very soon, potentially coinciding with the conclusion of the Worldwide Developers Conference (WWDC) keynote.What Apple’s new Games app is all aboutWhile the exact function of the […]
MS Dhoni inducted into ICC Hall of Fame | Cricket News
[ad_1] MS Dhoni, former India cricket captain, has been inducted into the ICC Cricket Hall of Fame, recognizing his extraordinary career spanning 16 years with 17,266 international runs, 829 dismissals and 538 matches across formats for India. The wicketkeeper-batsman revolutionized the sport through his unique playing style, tactical leadership and achievements including winning all three ICC men's white-ball titles as captain. "It is an honour to be named in the ICC Hall of Fame, which recognises the contributions of cricketers across generations and from all over the world. To have your name remembered alongside such all-time greats is a wonderful feeling. It is something that I will cherish forever," Dhoni said about his induction. Dhoni's journey began in 2004 when he made his ODI debut. Though he was dismissed for a duck in his first match, he soon announced his […]
160-million-year-old blue-stain fungi in China found to be harmful to trees |
[ad_1] In a groundbreaking discovery, researchers have uncovered 160-million-year-old blue-stain fungi fossils from the Jurassic Tiaojishan Formation in China. The new findings offer fresh insights into the ecological relationships between blue-stain fungi, plants, and insects during the Jurassic period. These fungi are generally nonfatal to their hosts but often accelerate tree mortality when associated with wood-boring insects.According to ScienceDaily, a Chinese team of scientists highlights the discovery of well-preserved blue-stain fungal hyphae within Jurassic fossil wood from northeastern China, pushing back the earliest known fossil record of this fungal group by approximately 80 million years.Know about the blue-stain fungi, deadly to treesBlue-stain fungi are known for their ability to colonize wood, particularly in conifer trees, causing characteristic discoloration in the sapwood. While these fungi do not decompose wood, they often cause considerable damage when associated with wood-boring insects. Their role […]
America burning: LA reels under anti-immigration protests for third straight day despite Trump’s National Guard order
[ad_1] Multiple Waymo taxis burn near the Metropolitan Detention Center of downtown Los Angeles, following last night's immigration raid protest. (Video credit: X) For the third night in a row, downtown Los Angeles became the epicentre of chaos and confrontation as protests against US President Donald Trump's immigration crackdown boiled over into violence, with police deploying tear gas, rubber bullets, and flashbangs to subdue demonstrators. Protesters set self-driving cars ablaze, blocked the 101 freeway, and clashed with law enforcement late into Sunday night, leaving parts of the city scorched and on edge.The flashpoint came after Trump took the extraordinary step of deploying the National Guard to California without the consent of the state's governor, an act not seen in decades. More than 300 troops arrived over the weekend, with 2,000 authorised and 500 US Marines on standby.Meanwhile, California governor Gavin […]
Related
Costume Designer Amritha Ram on designing Kamal Haasan’s unconventional look in ‘Thug Life’: ‘He’s always done what others don’t’ – Exclusive | Tamil Movie News
[ad_1] Amritha Ram discusses her creative journey designing costumes for Kamal Haasan in Mani Ratnam's 'Thug Life.' She highlights the collaborative process with Ratnam, whose precise vision guided the film's unique aesthetic, diverging from typical commercial styles. Ram details the evolution of Haasan's wardrobe across three distinct stages, emphasizing minimalism and character-driven choices, particularly in the Delhi and Nepal looks. Costume designer Amritha Ram has worked with Kamal Haasan on multiple projects, but Thug Life—directed by the legendary Mani Ratnam—offered a creative journey like no other. In this exclusive chat with ETimes, she opened up about building the layered wardrobe for Kamal’s complex character, working closely with Mani Ratnam’s precise vision, and how the film’s aesthetics stand apart from typical commercial fare. Excerpts...What was the most exciting challenge about designing for Kamal Haasan in Thug Life under Mani Ratnam's direction?The […]
If It Happened There: Donald Trump sends central troops to quell protests in opposition-ruled California | World News
[ad_1] Protesters confront police on the 101 Freeway near the Metropolitan Detention Center of downtown Los Angeles, Sunday, June 8, 2025, following last night's immigration raid protest. (AP Photo/Jae C. Hong) Note: The following piece is inspired by Joshua Keating’s If It Happened There which uses tropes and tones normally used by American media to describe events in other countries. The facts presented deal with as much exactitude and accuracy as an American media outlets’ reporting about a foreign country.Los Angeles, Mexican for the city of angels, is home to Hollywood – America’s answer to Bollywood – and a city where starstruck aspirants come with the dream of being immortalised on the silver screen. Yet, the city, which falls under America-administered California, an opposition state which overwhelmingly voted for Mr Donald Trump’s rival from the Democratic Party, Ms Kamala Harris, […]
Apple prepares for new ‘Games’ app as domain goes live ahead of WWDC 2025 keynote
[ad_1] Apple is expected to launch iOS 19 (or rumoured iOS 26) and one of new features that is reported to come is a new Apple Games app. Apple appears to be laying the groundwork for this new application, which is said to curate games from the App Store and Apple Arcade, as a domain purportedly leading to the platform has gone live.As per a report by 9to5mac, the company's new games.apple.com domain has just gone live. However, it is currently displaying a blank page, signaling imminent content.This shift from a "Safari Can’t Find The Server" error message to a blank white page strongly suggests Apple is preparing to push content to the URL very soon, potentially coinciding with the conclusion of the Worldwide Developers Conference (WWDC) keynote.What Apple’s new Games app is all aboutWhile the exact function of the […]
MS Dhoni inducted into ICC Hall of Fame | Cricket News
[ad_1] MS Dhoni, former India cricket captain, has been inducted into the ICC Cricket Hall of Fame, recognizing his extraordinary career spanning 16 years with 17,266 international runs, 829 dismissals and 538 matches across formats for India. The wicketkeeper-batsman revolutionized the sport through his unique playing style, tactical leadership and achievements including winning all three ICC men's white-ball titles as captain. "It is an honour to be named in the ICC Hall of Fame, which recognises the contributions of cricketers across generations and from all over the world. To have your name remembered alongside such all-time greats is a wonderful feeling. It is something that I will cherish forever," Dhoni said about his induction. Dhoni's journey began in 2004 when he made his ODI debut. Though he was dismissed for a duck in his first match, he soon announced his […]
160-million-year-old blue-stain fungi in China found to be harmful to trees |
[ad_1] In a groundbreaking discovery, researchers have uncovered 160-million-year-old blue-stain fungi fossils from the Jurassic Tiaojishan Formation in China. The new findings offer fresh insights into the ecological relationships between blue-stain fungi, plants, and insects during the Jurassic period. These fungi are generally nonfatal to their hosts but often accelerate tree mortality when associated with wood-boring insects.According to ScienceDaily, a Chinese team of scientists highlights the discovery of well-preserved blue-stain fungal hyphae within Jurassic fossil wood from northeastern China, pushing back the earliest known fossil record of this fungal group by approximately 80 million years.Know about the blue-stain fungi, deadly to treesBlue-stain fungi are known for their ability to colonize wood, particularly in conifer trees, causing characteristic discoloration in the sapwood. While these fungi do not decompose wood, they often cause considerable damage when associated with wood-boring insects. Their role […]
America burning: LA reels under anti-immigration protests for third straight day despite Trump’s National Guard order
[ad_1] Multiple Waymo taxis burn near the Metropolitan Detention Center of downtown Los Angeles, following last night's immigration raid protest. (Video credit: X) For the third night in a row, downtown Los Angeles became the epicentre of chaos and confrontation as protests against US President Donald Trump's immigration crackdown boiled over into violence, with police deploying tear gas, rubber bullets, and flashbangs to subdue demonstrators. Protesters set self-driving cars ablaze, blocked the 101 freeway, and clashed with law enforcement late into Sunday night, leaving parts of the city scorched and on edge.The flashpoint came after Trump took the extraordinary step of deploying the National Guard to California without the consent of the state's governor, an act not seen in decades. More than 300 troops arrived over the weekend, with 2,000 authorised and 500 US Marines on standby.Meanwhile, California governor Gavin […]
Be the first to leave a comment