EMIs set to fall? Check latest home loan rates after RBI’s rate cut

The Reserve Bank of India (RBI) recently announced its Monetary Policy Committee (MPC) decision in April 2025. As expected, the RBI has reduced the repo rate to 6% from 6.25%. This marks the second consecutive rate cut this year, following a similar reduction in February. This move is important for homebuyers, as it directly affects home loan interest rates.

A home loan is money borrowed from a bank or housing finance company to buy or build a house. You repay this loan in monthly instalments (EMIs) over several years. The interest rate on your home loan can be either fixed or floating. Floating rates change based on the repo rate — the rate at which the RBI lends money to banks.

Since the RBI has reduced the repo rate to 6% from 6.25%, your existing floating-rate home loan EMI may come down slightly in the coming months. New borrowers could also benefit from lower interest rates, making home loans a bit more affordable. This is welcome news for both current homeowners and those planning to buy a flat or home.

You can get a home loan from public sector banks like SBI or Bank of Baroda, private banks like HDFC Bank or ICICI Bank, and housing finance companies like LIC Housing Finance. The list of banks with the current interest rates is mentioned below. You can apply online or visit their branches. With the help of basic documents, including proof of identity, income, and property details, you can get a loan. The interest rates depend on how you have maintained your credit score.

Borrowers should also compare loan interest rates with other offers available. They must read the terms carefully and plan their finances. The RBI’s next move will depend on inflation and growth trends, so homebuyers should stay alert to future changes.