New Delhi, June 12 -- You may be relieved that the recent 50 bps (0.5%) cut in interest rates by the Reserve Bank of India (RBI) will result in lower EMIs (Equated Monthly Instalments) on home loans. But do you know that the time it takes for the rate cut to have an effect on your EMIs will depend on the type of loan that you have taken?

For instance, if your home loan is based on MCLR (Marginal Cost of Funds based Lending Rate) the changes would take longer to reflect on your EMIs. But if you have taken RLLR (Repo Linked Lending Rate) home loans, the impact of RBI's rate cuts on your EMIs will be faster. RLLRs are a fairly recent phenomenon wherein the home loan interest rate is reset every three months and is tied to RBI's prevailing r...