New Delhi, June 6 || The jumbo 50 bps rate cut by the Reserve Bank of India (RBI) will directly benefit home loan borrowers, especially existing ones, by reducing their interest burden, experts said on Friday.
The decision comes at a pivotal time, as India, now the world’s fourth-largest economy, is witnessing strong real estate momentum across metros as well as tier 2 and 3 cities.
“Lower lending rates will directly enhance home loan affordability, particularly in interest-sensitive categories like mid-income and affordable housing. Reduced EMIs are expected to significantly improve buyer sentiment and encourage first-time homebuyers to enter the market,” said Shekhar G Patel, President, the Confederation of Real Estate Developers' Associations of India (CREDAI).
The repo rate is the rate at which the RBI lends money to banks. When it goes down, banks usually lower the interest rates they charge customers.
This means personal, home, and business loans could become cheaper, and people may pay lower EMIs. It’s good news for anyone with a loan or looking to borrow.