What is the new RBI directive regarding credit information updates?

The RBI has mandated lenders to provide credit information to credit information companies (CICs) every two weeks instead of monthly.

How does this new update impact my CIBIL score?

Your CIBIL score will be updated more frequently, reflecting your credit behaviour every two weeks, leading to a more accurate and current credit score.

Why is it important to have a good CIBIL score?

A good CIBIL score (750 and above) improves your chances of getting loans, credit cards, and favourable interest rates from lenders.

What is considered a good CIBIL score?

A CIBIL score of 750 and above is considered good and indicates reliable creditworthiness.

How does more frequent credit information updates benefit consumers?

It allows consumers to monitor their credit status more closely, make timely financial decisions, and correct any errors quickly.

What is the new RBI directive regarding credit information updates?

The RBI has mandated lenders to provide credit information to credit information companies (CICs) every two weeks instead of monthly.

How does this new update impact my CIBIL score?

Your CIBIL score will be updated more frequently, reflecting your credit behaviour every two weeks, leading to a more accurate and current credit score.

Why is it important to have a good CIBIL score?

A good CIBIL score (750 and above) improves your chances of getting loans, credit cards, and favourable interest rates from lenders.

What is considered a good CIBIL score?

A CIBIL score of 750 and above is considered good and indicates reliable creditworthiness.

How does more frequent credit information updates benefit consumers?

It allows consumers to monitor their credit status more closely, make timely financial decisions, and correct any errors quickly.

Are home loan interest rates going down?

Yes, banks have been cutting lending rates following RBI’s repo rate reductions, making some home loan rates lower in late 2025.

Will home loan EMI reduce?

If you have a floating-rate home loan linked to repo/EBLR, EMIs can reduce when RBI cuts rates and banks pass benefits on. The extent and timing depend on your reset period and lender’s policy.

What is the new rule of EMI in RBI 2025?

RBI’s 2025 guidelines allow banks to reduce the spread on floating loans earlier than the earlier 3-year lock-in, helping lenders cut interest faster and potentially lowering EMIs.

What is the 20 30 40 rule for home loans?

This rule usually means keep your down payment 20%, loan EMI around 30% of income, and housing cost within 40% of your budget, to manage financial risk.

What is the 40% EMI rule?

A financial thumb rule suggests EMI should stay below 40% of your monthly income to avoid repayment stress.

Will interest rates go down to 4% in 2025?

In India, home loan interest rates around 4%, so lowering of interest can be highly unlikely in 2025; current borrowing costs for banks are much higher, so retail loan rates typically stay above 7% to 8%.

How much EMI for 40 lakh home loan for 20 years?

For a Rs. 40 lakh loan at around 7.15% p.a., EMI over 20 years is about Rs. 32,000 to 34,000 per month.

Will mortgage rates ever get down to 3% again?

A return to 3% mortgage rates in India is very unlikely unless inflation and RBI policy rates drop dramatically; such low rates have not been the norm recently.

How to pay a 30 year home loan in 10 years?

You can pay it off early by making higher monthly EMIs or periodic prepayments/principal lump sums, which reduces interest and shortens tenure.

How much salary is needed for a 30 lakh home loan?

As a rough guide, lenders might approve 60× your monthly salary; so ₹30 lakh loan could need Rs. 40,000–Rs. 50,000/month depending on other EMIs and credit score.

How much is a 7 lakh EMI per month?

If you mean EMI for ₹7 lakh home loan, at 8.5% for 20 years it’s roughly Rs. 6,100– Rs. 6,500/month

Is it better to pay in full or use EMI?

Paying in full saves interest but ties up cash; EMIs preserve liquidity but cost more over time. Choose based on your cash flow, returns on alternative investments, and emergency savings.

0% EMI means you pay no extra interest on the purchase and only repay the principal in equal monthly instalments, often offered on consumer goods with merchant/bank subsidies.

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Will Home Loan EMIs Be Reduced? Here’s What You Should Know

Pragya Pathak

Author

Updated: 20-01-2026 at 3:30 PM

Many home loan borrowers have been waiting for lower Equated Monthly Instalments (EMIs) due to falling interest rates. Home loan borrowers have been facing financial burdens for a few months as the interest rate has been increasing. Because of the increasing home loan interest rates, purchasing a home is getting difficult and tricky, especially for first-time buyers and middle-class families. In October, there might finally be some positive news.

The Reserve Bank of India (RBI) is the apex body of the banking system, which also adjusts the repo rate, which affects loan interest rates, including home loans. As the repo rates can directly affect the interest rates offered by commercial banks, a reduction in the percentage of the repo rate can have a positive impact on home loan interest rates. This will make the dream of purchasing a home a reality for many, as home loans will become affordable and easy to manage rather than financially burdening.

Read the article to learn more about the home loan interest rates, ranging from the reason of falling home loan interest rates to advise to home loan borrowers, and information on current home loan interest rates and best home loan interest rates india.

Overview

The table below summarises some key details about the home loan interest rates that one should know before purchasing a home.

Present situation	People who took home loans are forced to pay higher EMIs as the interest rates are increasing
Apex authority	The Reserve Bank of India regulates the interest rates through repo rate changes
Why is the rate going down?	RBI is working on balancing inflation control and economic growth
Expected RBI home loan interest rate impact	Home loan interest rates and EMIs will go down
Who will be benefited?	Existing borrowers of home loans and new home buyers
What should home loan borrowers do?	Switch lenders or advance your interest payments

Why Are The Interest Rates On Home Loans Falling?

The Reserve Bank of India (RBI) is always figuring out ways to tackle inflation and manage economic growth side by side. Because of this, the RBI has decided to make adjustments to the repo rate, which will impact the home loan interest rates as well. The RBI home loan interest rate impact will affect commercial banks to a great extent.

Commercial banks often need loans to manage the bank smoothly, so they take loans from the RBI. The repo rate is the interest rate at which commercial banks take or borrow money from the Reserve Bank of India. A lower repo rate means commercial banks can borrow money at cheaper rates. This will affect the home loans as well, as the commercial banks reduce home loan interest rates, which additionally lead to home loan EMI reduction.

The reduction might not happen immediately, as banks usually take time to pass on the benefits of the reduced rates to their customers. The reduction might be seen in 3-4 months.

"The RBI is likely to continue to stress being 'actively disinflationary', and be on wait-and-watch mode for assessing multiple macro forces - unless, of course, global winds force them to move focus to financial stability over the 4% inflation mandate," says Madhavi Arora, Lead Economist, Emkay Global Financial Services.

What Should Home Loan Borrowers Do?

Even though the housing loan interest rates India are expected to fall soon, home loan borrowers should not delay their plan to purchase a house. They should purchase their house before the price increases. This will ensure that they secure their desired property.

According to Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution Pvt. Ltd., “Property prices are rising, so if a buyer finds a property that fits their needs and budget, they should go ahead with the purchase.”

As home loans are a long-term commitment, it will not matter if people purchase their house now or when the prices drop. In the long term, they will see a significant price difference.

Borrowers can take several steps to maximise the benefits of falling home loan rate cut India. Let’s take a look at a few ways how borrowers can reap the maximum benefits:

Borrowers with fixed-rate home loans often miss many beneficial chances when the interest rate drops, as their EMI remains the same. And that’s the primary reason why they should consider switching from their fixed-rate home loans to floating-rate home loans, as it is open to the benefits that come from repo rate cuts and changes in the policy. Floating-rate home loans are in alignment with market conditions and hence, EMIs are exposed to fluctuations.
If the current lender isn’t passing on the rate cuts, home loan borrowers should consider switching their finances to a different bank that offers a lower rate to make the most of the reduced rates. Home loan borrowers should effectively make a comparison between various banks offering home loans and compare important things, like the rate of interest, processing fees, and quality of service, to avoid falling prey to hidden costs.
When the interest rates are lower, people can save up the rest of the amount and use it wisely, like for prepaying a portion of the loan which can significantly reduce the principal amount. This leads to reduced duration of the loan, reduced pending EMIs, and thus helps people in making a practical plan for paying off their financial debts.

Existing home loan borrowers who have witnessed substantial improvements in their credit profile due to improved credit score, income, or occupation profile since availing their home loan should also explore the possibility of interest cost savings through home loan balance transfer. Their improved credit profile may make them eligible for home loans at much lower rates from other lenders," says Ratan Chaudhary, Head of Home Loans, in a leading finance firm.

Also Read: Major RBI Banking Rule Changes In January 2026- New Compliance Guidelines Every Account Holder Must Know

Best Home Loan Interest Rates India

Usually, the best home loan interests in India are offered by public sector banks, popular and trusted private banks, and reputed housing finance companies. Borrowers should compare their options based on some important relevant factors, like interest rate, processing fees, and terms of repayment.

There are some points that the borrowers should take into account while deciding the best rate of interest for themselves, such as:

Borrowers should ideally focus on maintaining a high credit score, which should be above 750.
All the people who are planning to apply for home loans should have a strong and ideal repayment history and lesser outstanding debts. These characteristics put confidence in the lenders and helps in making informed decisions about whether to lend a borrower money or not.
It is advised to the borrowers to use online comprison tools and other such measures to compare the home loan interest rates of various banks and then choosing one based on their background work and from whichever is suiting them the best.

Conclusion

Keeping a track of home loan interest rate trends will significantly help home loan borrowers save in the future and also maximise their savings in the long run. As the home loan interest rates are going to decrease, home loan borrowers should start bargaining and planning now to make the most out of the cut rates. This will ensure that they secure their desired houses while also saving significantly for their respective futures.

We advise you to educate yourself thoroughly about the home loan interest rates and related matters to make informed and strategic decisions. Prices of properties are always increasing and rarely go down; therefore, acting without unnecessary delays but only after considering all aspects of the situation should be the ideal approach for all home buyers.

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