December 2025 is turning out to be good news for homebuyers. Following the Reserve bank of India’s (RBI) decision to cut the repo rate by 25 basis points, several major banks, including HDFC bank, punjab National bank (PNB), ICICI bank, Axis bank, SBI, and mahindra BANK' target='_blank' title='kotak mahindra-Latest Updates, Photos, Videos are a click away, CLICK NOW'>kotak mahindra Bank, have lowered their home loan interest rates.
What This Means for Borrowers
- Lower EMIs: Borrowers can expect reduced monthly installments, making home loans more affordable.
- Increased Loan Affordability: With lower interest rates, homebuyers may be able to borrow higher amounts without increasing EMIs.
- Opportunity for New Buyers: Those planning to buy a house or refinance existing loans can benefit from the rate cut immediately.
How Banks Adjusted Rates
- Most banks have passed the rate cut directly to customers, with interest rates on home loans dropping by approximately 0.1%–0.25%, depending on the bank and loan category.
- Floating rate home loans are directly affected by the repo rate reduction, while fixed-rate loans may see adjustments on renewal or new loans.
Why RBI Cut the Repo Rate
The RBI reduced the repo rate to:
Boost economic growth by making borrowing cheaper.
Encourage spending and investment during the festive and housing season.
Support housing demand in the real estate market.
Key Takeaway
If you are planning to buy a home, take a new home loan, or refinance an existing loan, this december could be an ideal time. With major banks lowering their interest rates, borrowers stand to save significantly on EMIs while taking advantage of cheaper credit.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk..jpg)
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