In the Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) made an important announcement about the repo rate, which has a direct impact on home loan EMIs.

RBI Keeps Repo Rate Unchanged

For the 10th consecutive time, the RBI has kept the repo rate unchanged at 6.5%. This decision was made as part of the fourth bi-monthly monetary policy for the fiscal year 2024-25, led by RBI Governor Shaktikanta Das.

The central bank aims to strike a balance between promoting economic growth and controlling inflation. This stability is crucial for homebuyers as it keeps loan interest rates steady, supporting their EMI payments.

Impact on Home Loan EMIs

With no change in the repo rate, those with existing home loans can breathe a sigh of relief as their EMIs will remain stable. This decision is particularly favourable during the festive season when real estate demand is typically higher.

What is the Repo Rate?

The repo rate is the interest rate at which the RBI lends short-term funds to banks, helping them meet their liquidity needs. This affects the cost of loans that banks offer to consumers and corporates.

Expert Opinions on the RBI’s Decision

1. Sanjay Dutt, MD and CEO of Tata Realty and Infrastructure, stated:
   “This move ensures stability, which is essential for the long-term growth of the real estate sector. Stable rates boost confidence among homebuyers.”
2. Pradeep Aggarwal, Founder & Chairman of Signature Global (India) Ltd, added:
   “The continued stability will likely keep the real estate market strong, especially during the festive season.”
3. Mohit Jain, Managing Director of Krisumi Corporation, highlighted:
   “While we expected a rate cut, the unchanged rate still supports stable EMIs, which is a good outcome for homebuyers.”
4. Pankaj Pal, MD of Whiteland Corporation, remarked:
   “This will have a positive effect on luxury housing, especially in cities like Gurgaon where demand is high.”

Will EMIs Decrease Soon?

Several experts suggest that a rate cut could be on the horizon, depending on how the global and domestic economies evolve. If rates are reduced shortly, it will likely lower EMIs for home loans, making housing more affordable.

How Does This Affect Real Estate?

The decision to maintain the repo rate gives a boost to real estate developers by ensuring project financing costs remain predictable. This steady rate allows developers to plan future projects with greater confidence and keeps the demand for housing strong.

Kreditbazar: Your Partner for Personal Loans

While the RBI’s decisions affect home loans, if you are looking for a personal loan with competitive interest rates, Kreditbazar is here to help. We offer pre-approved loans from leading lending partners and NBFCs to meet your financial needs quickly and efficiently.

Conclusion

The RBI has provided much-needed stability by keeping the repo rate unchanged. This decision is a win for homebuyers and the real estate sector, as it maintains affordable EMIs and supports housing demand. For those eyeing a personal loan, Kreditbazar is your trusted partner.