RBI Slashes Repo Rate by 125 bps Since Feb 2025: How Much Has Your Home Loan EMI Dropped?
The RBI’s 125 bps repo rate cut since February 2025 has brought borrowing costs down to 5.25%. However, the home loan EMIs and overall interest burden have eased. It can additionally relief might be restricted as the central bank signals a gap.
With the RBI cutting the repo rate by 125 bps since February 2025, home loan borrowers may see a noticeable drop in EMIs—here’s how much you could be saving.
The meeting of RBI Monetary Policy Committee is expected to commence from 6 to 8 April 2026. It arrives at an important moment for the Indian economy. In its review in the February month, the MPC kept the policy repo rate unaffected at 5.25% and kept a neutral stance. It is even as inflation stayed generally in line with its medium-term target and development indicators remain tough.
In February 2026, the central bank planned to leave the repo rate unaffected at about 5.25%. It signals a pause after an aggressive rate-cut cycle in 2025. For buyers, with floating-rate home loans, the message is understandable: EMIs are doubtful to fall ahead for now, but the good thing is that the risk of an unexpected boost even looks restricted.
How RBI cut rates through 2025
In the middle of February and December 2025, the RBI policy cut the repo rate by a cumulative 125 basis points. It brings down from 6.50% to 5.25% to assist the financial development.
The rate-cut cycle progressed in the following way in 2025:
- February: Repo rate cut by 25 bps to 6.25%
- April: One more 25 bps cut to 6.00%
- June: A sharper 50 bps cut to 5.50%
- August and October: Rates held stable
- December: Concluding 25 bps cut to 5.25%
- February: Rates stay fixed at 5.25%
Real EMI impact
Statistics from the table highlight the tangible savings buyers have previously seen due to this rate cycle. The figures illustrate an important point. It is about a 100–125 bps reduction in interest rates. It has a disproportionately large blow on long-tenure loans such as home financing. The borrowers can take benefits not just through lower EMIs, but also through a significant reduction in the lifetime interest results.
