India, June 10 -- The Reserve Bank of India (RBI) has cut the repo rate three times this calendar year, with two 25 basis point (bps) reductions in the first two Monetary Policy Committee (MPC) meetings. There were followed by a sharper 50 bps cut in the most recent policy. This brings the total rate cut to 100 bps, signalling the central bank's strong intent to stimulate credit demand and revive economic activity by lowering borrowing costs.

This development should come as positive news for home loan borrowers, as it is expected to reduce EMIs, especially for those with floating-rate loans.

However, despite the RBI's clear direction, banks and lending institutions often delay or partially pass on the benefits of rate cuts. As a result,...