Is Home Loan Finally CHEAP In India?
RBI Rate Cut's Impact On Home Loans!
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How are you doing? As you may already know, Niyati & I are all for focusing on roti, kapda, and makan! So please tell me,
What I was up to: The past week was super fun for me because my very close friends are getting married in a week and I’ve been staying true to my bridesmaid/groomsmaid duties and prepping! Niyati & I got to chat with Anu Menon AKA the ex Lola Kutty for an amazing episode of Happy Hour with FinCocktail and it was oh-so-fun! This will be coming out very soon and if you have any suggestions for guests or topics you want us to take up, DM us on Instagram, pleaaaaaase!!
But in the meantime, take a look at our last episode with Bhushan Padkil, SVP and Head of DTC Business at TransUnion CIBIL, who brings a wealth of experience and expertise in the field of credit. He gave us a lot of insider insights about Why Your Credit Score Matters with specific tips for individuals and MSMEs, watch it here:
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Market ka haal: Over the past week, the stock market felt like Bigg Boss, it’s too much drama and a whole lot of stress. 😅😅😅 Nifty and Sensex slipped about 1%, thanks to US tariff hikes, weak earnings reports, and some blue-chip stocks taking a fall. If you felt the pain, trust me, you weren’t alone, but please tell me you didn’t panic sell.😵💫
SIPs are slowing down, and certain overvalued stocks are finally getting a reality check. The market has been stuck in consolidation mode since last September, and investors are getting jittery. Basically, the market is acting like a confused intern—too hesitant to crash and too weak to rally.
But hey, it wasn’t all doom and gloom! Not everything's falling apart— things are slowly looking better after RBI rate cuts and smart investing is still yielding decent returns. So, while this week wasn’t a party, keeping a cool head and a diversified portfolio is still the way to go.🚀📊
Humara Gyaan: RBI has now announced insane rate cuts! They’ve slashed the repo rate to 6.25%, and if you have a home loan (or are planning one soon), this is your cue to pay attention! A 0.25% rate cut might not sound like much, but over time, the savings add up. Let’s break it down 👇
Let’s say you have a 20-year home loan at 8.75% and have paid 12 EMIs by March, a 25 basis point cut from April will bring down your interest outgo by ₹8,417 per lakh. On a ₹50 lakh loan, this results in savings of ₹4.20 lakh over the tenure, reducing the loan period by a whopping 10 EMIs!!!
So, What Should You Do?
🏡 New Home Buyers: Now’s a great time to lock in a lower rate and reduce your long-term interest burden.
🔄 Existing Borrowers: Consider refinancing, negotiating with your lender, or opting for a balance transfer to benefit from the reduced rates.
🏗️ Real Estate Investors: With cheaper home loans, the housing market—especially affordable & mid-range segments—is expected to heat up.
While the EMI drop might not feel game-changing today, small savings over 20 years are bound to create a big impact on your financial future. I’d say it toally makes a huge difference today as well, btw, because you’ve a little surplus left to spend or invest and that’s never bad news, regardless of how small If you’ve been on the fence about homeownership, this could be your sign to make a move. 😉
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A rate cut is only valuable if you take action. Your bank won’t always pass on rate cuts immediately (or fully). If you have a floating rate loan, check with your lender to ensure you’re getting the best possible deal. If they’re dragging their feet, it’s time to push back or explore other lenders, cause life is now giving you lemons!
Here’s to making lemonade🍻
Sayali❤️
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