After the cut down in the repo rate by the apex bank, the home loan EMIs are expected to fall down. Many banks have reduced their base rate as well. The reduction of 0.25% will reduce the EMI on Rs 50 lakh home loan with tenure of 20 years i.e. approximately will reduce EMI by Rs 831 per month.
The reduction will bring a slight relief to the customers. Further it is expected that in coming 12 months the EMI can drop down by Rs 2000-3000. Over the next couple of years, EMI for a 50 lakh loan could come down by as much as Rs 8,000 per month. Auto Loans carry fixed rat so the auto loans customers have no chance to get benefitted however the other loans including personal loan, education loan will also become cheaper, as soon as the banks will start reducing their rates.