Vipul Patel

Home Loan Rates: A Switch in Time Can Save Lakhs

• RBI rate cuts may not fully reflect in older home loans
• Switching lenders can reduce interest rates
• Part-prepayments can significantly cut tenure and interest
• Monitoring loan benchmarks is crucial for savings

Small financial decisions today can save lakhs over your loan tenure.

Nationalised Banks Cut Loan Rates After RBI's Repo Rate Cut

“A home loan borrower who has taken a Rs 50 lakh loan linked to Repo rate in November 2025 at 7.5 per cent for 25 year tenure pays EMI of Rs 36950. Post RBI's repo rate cut of 25 basis points, if he chooses to lower the EMI while keeping the loan tenure constant, his new EMI works out to Rs 36140 resulting in total interest saving of Rs 2.42 lakh.”

Home, Auto Loans to Get Cheaper as RBI Cuts Repo Rate

“Opting for a lower tenure by keeping the EMI unchanged will result in higher interest saving and clear your loan outstanding faster.”On a ₹50 lakh repo-linked loan taken in January 2025 at 8.5%, now at 7.25%

RBI Cuts Repo Rate to 6%: Relief for Home Loan Borrowers

• Repo-linked lending improves eligibility and lowers EMIs
• Borrowers could qualify for ₹25 lakh more in home loan amounts

New India Co-op Bank Crisis: Change Your EMI Mandates

“Borrowers will have to change the ECS (electronic clearing service) debit instructions. Your EMI commitment will have to be honoured through another bank account.”

“Such borrowers ought to write to the bank. They should issue instructions to adjust the balances in their savings or deposit accounts against the loan amount due.”On customers who have loans and deposits with the same bank

SBI Hikes MCLR by 10 Basis Points, Third Consecutive Increase

• Most home and consumer loans are now on RLLR, so an MCLR hike won't touch them
• The impact falls mainly on companies still linked to MCLR

“We would like to advise individuals whose loans are still linked to MCLR to shift to RLLR.”

RBI Allows Borrowers to Change Interest Rate

“The RBI has now made it mandatory that at the time of sanctioning a loan, the bank will have to convey in writing to the borrower the impact of a rate change.”

• Lenders can no longer act unilaterally on rate changes
• Borrowers choose a higher EMI, longer tenure or both

How to Manage Your Home Loan Post Rate Hike

“Borrowers must insist for increase in EMI as rates increase in order to mitigate the impact of the rate hike. In the long-term this will benefit borrowers as rates start declining.”

• The article's ₹50 lakh repayment table was sourced from his advisory

Prepay a Bigger Amount to Reduce Tenure

“A borrower will have to specifically ask the bank for a reduction in his/her EMI.”On why part-prepayments usually shorten tenure instead of lowering the EMI