New Delhi, April 9 -- As the Reserve Bank of India (RBI) on Wednesday cut the repo rate again by 25 basis points, home loan EMIs are expected to fall. In the past two months, RBI has cut the repo by a total of 50 basis points. In February, RBI cut the benchmark rate from 6.5 per cent to 6.25 per cent.

Therefore, the interest rates on home loans, which are linked to the MCLR and EBLR, stand to decline. Prior to October 1, 2019, floating-rate home loans were linked to the MCLR, i.e., marginal cost of lending rates. This means interest rates on home loans move upward or downward based on the marginal cost comprising deposit rates, repo rates, operating costs, and the cost of maintaining the cash reserve ratio (CRR).

With effect from Octobe...