Repo rate steady at 5.25%: home loans are the cheapest in years — lock in the benefit
After 125 bps of cuts in 2025, the RBI held rates through 2026's policy meetings. Here's what it means for your EMI and how to make sure your bank passes it on.
The Reserve Bank of India's repo rate stands at 5.25% after four cuts totalling 125 basis points in 2025 took it down from 6.50%. The Monetary Policy Committee kept it unchanged at its February, April, June and August 2026 meetings; the next review was due in October 2026.
Most new floating-rate home loans are linked to an external benchmark — usually the repo rate — so cuts pass through quickly. Home loan rates at public-sector banks start around 7.10% for the best borrowers, though the rate you get depends on your credit score and profile.
What the cuts did to EMIs
On a ₹50 lakh loan over 20 years, borrowers on repo-linked loans are paying roughly ₹3,900 a month less than at early-2025 rates, according to lender estimates.
If you took your loan before 2025 or are on an older MCLR/base-rate loan, check your current rate today — many borrowers are still paying a percentage point or more above new customers. Ask your bank to switch you to the latest repo-linked rate (often for a small fee), or refinance. Keep the same EMI and let the tenure shrink: that's where the big interest savings are.
- Run your numbers in the EMI and Prepayment calculators.
- A 750+ credit score typically gets the lowest spread.
- Stress-test your budget at +2% — rates do move both ways.
Sources
- Current RBI Repo Rate: 5.25% — CorpLaw Updates
- Home Loan Interest Rate Trends in India 2026 — India Shelter
- RBI Repo Rate 5.25% in 2026: Impact on Home Loan EMI — LoanGuru
Figures are as reported by the sources above on or before the AlphaDesk publication date. “AlphaDesk take” sections are our analysis, not advice. Verify details before making decisions.
Book a free 15-minute clarity call with a buyer-side advisor.
Book free call