Understanding the impact of RBI's recent repo rate cut
The RBI just dropped its repo rate by 1%, bringing it down to 5.5%—the first big cut in nearly two years.
This move means banks like SBI and Bank of Baroda are lowering home loan rates, with LIC Housing Finance now offering new loans at 7.5%.
If you have a floating-rate loan, expect your EMIs to go down or your loan to finish sooner after the next reset.
Cheaper loans could also make buying a home or borrowing money a bit more tempting.
RBI's rate cut and its implications
The RBI wants to boost lending and help the economy by making borrowing cheaper, but lower rates can mean less interest for people who keep money in the bank.
To keep things moving, the RBI also reduced how much cash banks need to hold back, freeing up more money for loans.
Even with all this, banks are still being careful about who they lend to—so you'll need good credit if you're thinking about taking out a loan.