The Reserve Bank of India (RBI) is going to announce monetary policy on Wednesday. According to experts, the repo rate is expected to cut by 0.25 percent. If this happens, the interest rates on the home loan will be low and your EMI may decrease. In such a situation, it is important to know how to prepare a home loan can prove to be a profitable deal for you.
EMI early, reduce the burden of interest
If you pay the EMI of your home loan ahead of time, it reduces the principal amount of your loan. This directly affects the interest rate and tenure of your loan. Overall, you can avoid interest of millions of rupees.
CIBIL score will improve, you will get benefit in future
Pre-payment of home loan also improves your CIBIL score. This score for bank and financial institution shows how reliable borrowers you are. It is considered good to have more than 750 scores, so that you can easily get a loan in the future.
Floating rate loan is the most profitable
If your home loan is at floating interest rate, then good news. Pre-payment in such loans usually does not cause any penalty. The floating rate is connected to the repo rate of RBI, that is, if the RBI reduces the repo rate, then your loan interest rate will also decrease.
What is home loan interest rates now?
As of April 2025, the country’s major banks such as SBI, HDFC, ICICI and Kotak Mahindra Bank have home loan interest rates between 8.25% to 10.25%. If RBI reduces the repo rate, these rates can also come down.
What do experts say?
According to Rishi Anand, MD and CEO of Aadhaar Housing Finance Limited –
“If your loan is at floating rate then pre-payment can be a sensible financial decision. This can save you a big amount in the long run.”
Financial planning will improve
Pre-payment not only saves interest, but it also makes your financial future strong. With this, you can quickly become debt -free and later be ready for other investment or expenses.
📌 Conclusion:
If RBI reduces the repo rate, it can be a golden opportunity for you to reduce EMI. Also, if possible, prepare a home loan pre-payment-from this you can not just get interest, but also to a large extent from future concerns.
