The move is expected to boost sectors such as real estate, which depends heavily on loans for its consumers to make a purchase.

The Reserve Bank of India (RBI) could reduce interest rates by a further 50 basis points (bps) in 2025 and transition from a "neutral" to an "accommodative" monetary policy stance, according to a recent report by the Bank of Baroda.

If you’re on a fixed rate, you might want to evaluate if switching to a floating rate makes sense, depending on market conditions and your remaining loan tenure.