How Much EMI will reduce on a ₹1 Crore Home Loan?

Owning a home is a dream for many, but for middle-class households, monthly EMIs can be a heavy burden. In a major relief, the Reserve Bank of India (RBI) has cut the repo rate by 25 basis points to 5.25%, leading to lower interest rates on home loans linked to external benchmarks. So far this year, the RBI has reduced rates four times, bringing home loan interest rates down from around 9% last year to 7.1–7.5%, depending on the bank.

Several banks—including Union Bank, Bank of India, Bank of Maharashtra, and Indian Overseas Bank—are currently offering home loans at 7.35%, with rates likely to decline further. For a ₹1 crore home loan taken for 15 years, a 0.25% interest rate reduction can lower the monthly EMI by approximately ₹1,440, translating to an annual saving of ₹17,280. This reduction offers significant relief to homebuyers, particularly middle- and lower-income households.