New Delhi: The month of December has brought relief for those who are preparing to buy a house. RBI reduced the repo rate by 25 understructure points in its monetary policy. From February 2025 till now, the repo rate has been reduced by a total of 1.25 percent, and it is now at 5.25 percent. Its effect was immediately visible in the market. Many big banks have reduced their home loan rates.
How light will the EMI be?
If your loan of Rs 50 lakh is for 20 years, then by waffly the rate from 8.5% to 7.25%, you are saving virtually Rs 3900 every month. Due to low interest rates, it has wilt easier for new buyers to buy a house than before.
Why did loans wilt cheaper?
The borrowing forfeit of banks reduces due to reduction in repo rate. RBI has given a well-spoken signal to the financial sector that the benefits of this relief should reach the customers. For this reason, banks are reducing their lending rates—RLLR, RBLR, and MCLR. The market situation is moreover favorable. Inflation is under control, liquidity is fine, and demand in the real manor sector is increasing. For this reason, rate cuts were seen several times this year.
Which banks reduced interest rates?
1. HDFC Bank
- Reduction in MCLR by up to 5 understructure points.
- Now the rate is between 8.30% and 8.55%
- Relief in EMI of MCLR-related customers
2. Punjab National Wall (PNB)
- RLLR reduced from 8.35% to 8.10%
- Effective from 6 December 2025
- The uncontrived goody of transpiration in RLLR reaches the customers.
3. Wall of Baroda
- BRLLR reduced from 8.15% to 7.90%
- Cheap home loans to new customers
4. Indian Bank
- RLLR reduced from 8.20% to 7.95%
- Rate workable from 6th December
5. Wall of India
- • RBLR reduced from 8.35% to 8.10%
- • Changes constructive from 5 December 2025
6. Wall of Maharashtra – Cheapest home loan in the market
- Home loan rate reduced from 7.35% to 7.10%
- Relief on car loan rates and processing fees also
- Lowest interest rate in the market right now
Are there any changes you should make at this time?
If your home loan is ongoing or you are thinking of a new loan, these steps will help you:
- Check your loan reset date
- Compare with your bank's new rate
- Is it largest to reduce EMI or reduce tenure—decide
- If you are on an old MCLR or wiring rate loan, consider shifting to a repo-linked loan
Will new customers get firsthand benefits?
For new loan borrowers, banks update their vellum rates immediately, while existing customers will get the new rate on their reset date. If your wall has not been worldly-wise to reduce the rate yet, then it is possible that it may moreover make changes in the coming days. Competition for home loans has then intensified in the market.
Will 2026 be largest for home buyers?
The reduction of 125 understructure points this year has brought lanugo the forfeit of the loan considerably. EMIs are rhadamanthine lighter, and the shopping environment is moreover looking strong. More banks may update rates in the coming months.
If you are planning to buy a house, then this time may prove to be largest for you.
