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.

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

The RBI's recent 0.25 percentage point cut in the repo rate is under close government scrutiny to ensure banks pass this benefit to consumers. The cen

The Reserve Bank of India (RBI) reduced its key repo rate on Friday for the first time since May 2020, aiming to provide stimulus to the sluggish economy, which is projected to grow at its slowest pace in four years during the current fiscal year.

EMIs on home and vehicle loans will come down, making it easier for individuals to repay their debts. A lower repo rate makes borrowing cheaper for individuals and businesses, which can lead to increased spending and investment.

In addition to the repo rate cut, the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) rates have also been reduced by 25 bps to 6% and 6.5%, respectively. The bank rate has also been adjusted to 6.5%.

The repo rate, set by the RBI, influences borrowing costs for banks. A higher repo rate raises FD interest rates, attracting deposits, while a lower rate reduces FD returns by making borrowing cheaper.

The RBI Governor Sanjay Malhotra delivered the first interest rate cut in nearly five years. The RBI MPC reduced the repo rate cut to 6.25% from 6.50%.

The repo rate, till now, stood at 6.5 per cent. The move comes barely a week after the Centre cut personal income tax to boost consumption.

The interest rates on savings accounts have been drastically reduced by RBL Bank, according to the banks official website. The new rates will go into effect on5, 2025.

The RBI’s repo rate significantly influences personal loan interest rates. A rise in the repo rate leads to higher loan costs for borrowers, while a cut may lower rates, making loans more affordable.