New Delhi, Dec. 10 -- The Reserve Bank of India's latest 25‑basis-point (bps) repo‑rate cut-the fourth in 2025, bringing the total reduction to 125bps-has brought cheer to home‑loan borrowers.

The rate cuts will particularly benefit borrowers who took home loans in 2020-2022 at rates of 6-6.5%, but saw the rates rise to 9-9.5% within a year following the central bank's cumulative repo-rate hike of 225bps between May 2022 and March 2023. A basis point is one-hundredth of a percentage point.

Repo-linked lending dominates the retail loan market, so even a small cut ripples quickly through borrowing costs, lowering interest outgo for the borrower over the loan tenure.

Punjab National Bank (PNB) has lowered its repo-linked...