Manav Narang's Pro Tip: How to Reduce Your Home Loan EMI

As per Manav Narang, a financial influencer, if you're taking a home loan, you could save lakhs of rupees. Recently, the Reserve Bank of India (RBI) lowered the repo rate by 50 basis points (bps) within one month. That would mean if your home loan was previously 9%, it could now decrease to 8.5%.

Significant Discounts on Long Term Loans

That small 0.5% reduction in interest rate may not seem like much, but when your home loan is large and long-term (20 to 25 years), believe us, it makes a big difference. For example, if you've taken a home loan of ₹1 crore for 20 years, you can save up to ₹7.5 lakhs just because of this small rate cut. That's a huge relief on your monthly EMIs and overall interest paid!

But Don't Expect Banks to Tell You First

Here's the catch. When the RBI increases the repo rate, banks are quick to increase your home loan interest too. But when the repo rate falls, banks usually don't reduce your rate automatically. You have to go to the bank yourself and ask them to revise your interest rate. You must tell them, “Repo rate has gone down, so reduce my home loan interest too.”

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Repo Rate Down to 6%, More Savings Ahead

The current repo rate is now 6%, down from 6.5%. This means your loan's interest should also go down. Home loans being long-term loans means even a 0.5% drop in interest rate can lead to big savings. So don't wait, check your interest rate, and talk to your bank today!