Explained: what a 0.25 point rate cut means for your home loan EMI

Published 27 October 2026 at 2:41 pm IST · 1 min read

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When the central bank cuts its policy rate, banks linked to an external benchmark pass it on at the next reset date.

On a 30 lakh rupee loan for 20 years at 8.5 per cent, a 0.25 point cut lowers the EMI by about 470 rupees a month. You can also keep the EMI and shorten the loan.

Check your loan agreement for the reset date, and ask your bank in writing which option applies.

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Topics

Home loans

In this story

Organisation City Municipal Corporation
Place Jaipur

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