How much will your home loan EMI be reduced by lowering 50 basis points in the RBI Repo rate, knows that

New -delhi, June 6 (IANS). The Governor of the Reserve Bank of India, Sanjay Malhotra, announced on Friday to increase the repo rate to increase the repo rate by reducing a 50 basis points to 6 percent to 5.5 percent to increase the rate of the development of the economy. The Repo rate is the rate on which RBI gives banks loan. If reduced, it will be cheaper for banks to take a loan from a central bank, and they will also be able to pay loans to customers at cheaper rates. In such a situation, the repo rate lowered by 50 base or 0.50 percent and the direct impact on your home loan EMI. Let us understand this by example. For example, if you entered a home loan of Rs 50 Lakh for 20 years with an 8.50 percent stake, you had to give EMI of Rs 43,391 per month. But after reducing the repo rate, the interest rate will be 8 percent. With this you now have to pay Rs 41.822 as EMI. Due to the low interest rates, you will have to pay 1.569 rupees in EMI on a loan of Rs 50 lakhs with a 20 -year duration and you can save about Rs 18,828 a year. Credai secretary Gaurav Gupta says the repo rate cut of 50 basis points in the RBI is welcome. This will help to lower interest rates for home buyers. He further stated that reducing interest rates not only helps to reduce the cost of home buyers, but also increases the affordability of real estate. This will have a positive impact on all sectors of the country. Reduction in the repo rate, not just a home loan, but also reduces the EMI of personal loans, car loans and other types of loans. By lowering the interest rates, the central bank’s effort is to increase the growth rate of the economy. According to the central bank, the GDP growth rate in the first quarter of the financial year 2026 could be 6.5 percent, in the second quarter 6.7 percent, 6.6 percent in the third quarter and 6.3 percent in the fourth quarter. -Ians ABS/ Share This Story Tags