The Reserve Bank of India’s monetary policy committee (MPC) has begun its three-day meeting today starting September 29, 2025, in Mumbai. The key question on everyone’s mind: Will RBI cut the repo rate again and thus possibly lower home loan EMIs, or will it pause amid growth concerns? The decision, expected on October 1, will deeply impact borrowers, savers and the broader economy.

Since February 2025, RBI has trimmed repo rates by 100 bps from 6.5% to 5.5% after it held rates steady in August. For instance, if your Rs 50 lakh, 20-year home loan at 8.5 percent interest was disbursed in January, you would have gained significantly from a 100-bps rate reduction. This would shorten your loan tenure to 206 months and save around Rs 14.78 lakh in interest payments.

If you choose to reduce

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