India, Feb. 7 -- Following Budget 2025, where the finance minister announced zero income tax for salaries up to Rs.12 lakh, the RBI cut the repo rate by 25 bps to 6.25% on February 7, bringing much-needed relief for home loan borrowers.

It is to be noted that the RBI increased the repo state by 250 basis points from May 2022 to February 2023, bringing up the repo rate from 4% to 6.5%. This put pressure on existing and prospective home buyers who had to fork out a higher EMI or extend the home loan tenure.

"Both existing and new borrowers under floating rate loans stand to benefit from lower interest rates, improving loan affordability and accessibility. Fixed-rate loan borrowers will remain unaffected by the rate cut. That said, banks a...