RBI Cuts Repo Rate to 5.50%: Home Loan EMIs Down, FD Returns May Dip

INDIA NEWS

By Aniket Chakraborty June 6, 2025 Arrow

Governor Sanjay Malhotra says the decision follows three days of intense MPC discussions.

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Home loan borrowers could see their EMIs drop by ₹2,000 if banks pass on the rate cut.

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A ₹50 lakh loan for 20 years may now cost nearly ₹4.7 lakh less in interest overall.

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Borrowers with ₹30 lakh loans could save ₹1,176 monthly or shorten their loan tenure.

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Cumulative 2025 cuts now total 100 bps—February, April, and June combined.

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Experts say it’s a good time for new homebuyers who delayed decisions in past quarters.

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But fixed deposit returns are likely to decline across all tenors as banks adjust rates.

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FD investors, especially senior citizens, should consider locking in current rates now.

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The repo rate cut offers borrowers relief, but savers must act before rates fall further.

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