Views by Ankit Shah, COO and CMO, Grahm Realty on How Repo Rate Reduction will Affect Home Loans 

New Delhi, June 06, 2025: The recent reduction in the repo rate to 5.5% marks a much-needed and welcome move for India’s housing sector. After years of economic volatility triggered by the pandemic, the economy has now entered a more stable phase, allowing the RBI to take a softer stance. This rate cut directly impacts the real estate industry, particularly in the home loan segment, which constitutes a significant share of lending portfolios for banks.

With this move, home loan interest rates are expected to come down significantly. Where rates previously started at around 8.25%, they could now begin at approximately 7.5%, especially for borrowers with strong credit scores. This shift means a notable decrease in monthly EMIs. For instance, on a home loan of ₹1 crore, EMIs may now fall in the range of ₹68,000 – ₹70,000, making homeownership far more accessible.

For aspiring homebuyers, especially first-time buyers, this is a golden window to act. Lower EMIs translate into improved affordability and long-term savings, enabling many to finally turn their dream of owning a home into reality. At Grahm, we see this as a positive catalyst for renewed buyer interest, stronger communities, and overall market growth.

Corporate Comm India (CCI Newswire)