When Will Home Loan EMIs Drop? Understanding the Repo Rate Impact

The Reserve Bank of India's decision to maintain the repo rate signals a continued wait for relief in home loan interest rates. This pause, the fifth in a row, follows a significant 2.5% increase from May 2022 to February 2023.

Home loan borrowers, grappling with nearly 20% higher EMIs than two years ago, eagerly await a rate reduction. Global indicators, including subsiding inflation and changing bond yields, suggest a potential rate cut, though uncertainty lingers. For borrowers seeking respite, the article advises strategies such as opting for external benchmark-linked loans and exploring refinancing options to navigate the evolving interest rate landscape.

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