RBI Repo Rate Cut Brings Good News for Homebuyers: EMIs to Reduce Substantially

MUMBAI, INDIA / ACCESS Newswire / July 15, 2025 / Your dream home just became more affordable. Discover how Bajaj Finserv home loans can help you save more after the RBI's latest 50 bps repo rate cut.

Have you been saving for years, checking property prices every weekend, and calculating EMIs on your phone, only to find the numbers are just out of reach? Today, that calculation changes in your favour as borrowing costs drop significantly.

The Reserve Bank of India (RBI) has delivered excellent news for aspiring homeowners. A fresh 50 basis points repo rate cut marks the third reduction in 2025. This decisive move brings substantial relief to millions planning their home purchase.

With home loan EMIs set to drop considerably, the timing couldn't be better for those considering a Bajaj Housing Finance. Bajaj Finserv has already started passing on these benefits with home loan interest rates starting at just 7.49%* p.a.

Why do repo rate cuts matter for your housing loan?

The RBI's repo rate directly impacts the interest rates banks charge on home loans. When the central bank reduces this key rate, lenders typically lower their lending rates within weeks. This creates a ripple effect that benefits all housing loan borrowers.

Most modern home loans link to the External Benchmark Lending Rate (EBLR), which ensures faster transmission of rate cuts to borrowers. Unlike older systems, EBLR-linked loans reflect rate changes almost immediately.

Over time, the impact on your monthly outgo becomes substantial. Lower interest rates mean you pay less each month and a dramatic decrease in your total interest burden over the loan tenure.

Using a home loan EMI calculator can help you understand these savings clearly. You can compare different scenarios and plan your finances better. The calculator shows exactly how much you save monthly and over the entire loan period.

What the latest 50 bps cut means for you

The recent rate reduction translates into tangible monthly savings for borrowers that accumulate into substantial amounts over the loan tenure. The benefit becomes more pronounced with higher loan amounts.

Consider how different loan amounts benefit from the cumulative 100 bps cut this year. The table below shows the real impact on popular loan amounts for a period of 30 years.

You can choose between lower EMIs or a shorter loan tenure. Keeping the same EMI reduces your repayment period and saves you even more on total interest payments.

Get more out of your EMI with Bajaj Finserv Home Loan

Bajaj Finserv offers housing loans with competitive interest rates, flexible tenure options, and quick processing to help you secure your property faster. Here are their key benefits:

• Competitive interest rates starting at 7.49%* p.a. that help reduce your EMI burden considerably.

• Loan amounts up to Rs. 15 crore, which are substantial for premium properties and diverse housing needs.

• Complete freedom to prepay without foreclosure fees for floating rate borrowers.

• Extended repayment periods up to 32 years that keep monthly EMIs comfortable and manageable.

• Convenient doorstep document pickup service that eliminates multiple branch visits and saves time.

• Over 5,000 pre-approved projects that ensure faster loan processing and disbursal.

Bajaj Finserv's Loan Mahotsava continues until the end of July 2025, offering attractive terms across multiple loan categories. Don't miss the opportunity to secure the lowest rates on your loan products.

Plan your next step with the home loan EMI calculator

Bajaj Finserv's Home Loan EMI Calculator helps you understand how different factors like loan amount, interest rate, and tenure affect your monthly payments. This knowledge empowers you to make informed decisions. Here's how you can calculate your home loan EMIs using the calculator:

• Input the total amount you wish to borrow as a housing loan.

• Specify the current interest rate offered.

• Choose your preferred repayment period in years.

The calculator automatically displays your EMI, total interest, and total payment. It also provides a link to view the complete repayment schedule for your chosen parameters. Remember to experiment with different values to find your optimal plan.

With this EMI calculator, you can see how small changes in rate or tenure affect your payments. This prevents over-borrowing and ensures you choose a manageable EMI.

Fixed or floating-rate loans: Which is better now?

With fixed-rate loans, you know exactly what you will pay each month throughout the tenure. This stability helps with long-term financial planning. On the other hand, floating-rate loans offer immediate benefits when repo rates decline and your EMI reduces automatically with each rate cut.

Bajaj Finserv provides both options to suit different repayment preferences. Individual borrowers with floating rates face no charges on part-payment or foreclosure. This flexibility allows you to reduce your debt burden faster. The current rate environment strongly favours floating rate borrowers.

Balance transfer benefits

Thinking of switching your existing housing loan? Transferring to Bajaj Finserv can reduce your interest burden. Their competitive rates for balance transfers, starting at just 7.60%* p.a., often beat what you currently pay. The process involves minimal paperwork and quick approvals.

You can also avail of a top-up loan of up to Rs. 1 crore with the transfer. Use these extra funds for home renovation, education, or medical expenses. The combined facility provides comprehensive financial solutions.

How to apply for a Bajaj Finserv Home Loan

The process is user-friendly and entirely digital:

• Visit the Bajaj Finserv Home Loan page and click on 'APPLY'.

• Provide your full name, mobile number, and employment type.

• Choose from fresh loan, balance transfer, or top-up options.

• Generate and submit the OTP for verification.

• Enter your income, required loan amount, and property identification status.

• Add your date of birth, PAN number, and other details, as prompted.

• Click the submit button to complete the process and wait for a representative to get in touch to guide you through the next steps.

Remember to check your eligibility and prepare the necessary documents before you apply.

Required documents include KYC proof, income statements, and bank account details. The exact list depends on your employment type and loan amount. Keep these documents ready for faster processing.

The combined repo rate cuts this year have made housing loans more affordable. Bajaj Finserv offers additional flexibility, competitive rates, and quick approvals.

Don't wait for rates to rise. Check your eligibility and use the home loan EMI calculator to plan your next financial step. Download the Bajaj Finserv app or visit the official website to take a step closer to smart financing for your dream home.

About Us: Bajaj Finance Limited is India's most diversified non-banking finance company.

Name: Bajaj Finance Limited
Email: wecare@bajajfinserv.in
Organization: Bajaj Finance Limited
Website: https://www.bajajfinserv.in/

SOURCE: Bajaj Finance Limited