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RBI cuts the repo Rate by 25 bps. Impact on Repo Rate linked Home Loans

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That_average_guy said:
RBI has cut repo rate by 25 bps.
Source:- https://www.moneycontrol.com/news/b...ew-rbi-governor-sanjay-malhotra-12933114.html

Just wanted to know how and when will this affect the current ongoing home loans.
  1. How much time it takes to reflect this to the banks? (days, weeks, months?)
  2. Will banks lower the current home loan rates automatically or we have to manually raise request.
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Bank proactively pass benefits in self benefit, not for customer.
Rate increase or decrease, they first take their pie, may be 1-2 months passing benefits for customer.
They have this tendency on Advance and Deposit both side, only customer get curious later furious.
 
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rahulj87 said:
Any one with Axis home loan can confirm whether axis reduced the interest.
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No. When I emailed this is what they said.

"We understand your concerns raised related to change in REPO Rate by 0.25%. This has reference to recent announcement by RBI (Reserve Bank of India) related to 0.25% reduction in external benchmark (Repo) rate. In this regard, banks policy related to rest frequency of external benchmark linked loan account has been reiterated below for information.

We would like to inform you that external benchmark rates will be rest on a fixed day of each quarter. The cumulative effect of all changes (both increase and decrease) in Repo rate in particular quarter will be passed on the 25th of the last month of calendar quarter i.e. 25th March, 25th June, 30th September and 31st December

Accordingly, rest of rate of interest due to change in REPO is scheduled on 25-03-2025. You can view the revised interest rate and download the corresponding amortization schedule on the Axis Mobile app and Internet banking."
 
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kumars_001 said:
No. When I emailed this is what they said.

"We understand your concerns raised related to change in REPO Rate by 0.25%. This has reference to recent announcement by RBI (Reserve Bank of India) related to 0.25% reduction in external benchmark (Repo) rate. In this regard, banks policy related to rest frequency of external benchmark linked loan account has been reiterated below for information.

We would like to inform you that external benchmark rates will be rest on a fixed day of each quarter. The cumulative effect of all changes (both increase and decrease) in Repo rate in particular quarter will be passed on the 25th of the last month of calendar quarter i.e. 25th March, 25th June, 30th September and 31st December

Accordingly, rest of rate of interest due to change in REPO is scheduled on 25-03-2025. You can view the revised interest rate and download the corresponding amortization schedule on the Axis Mobile app and Internet banking."
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Could you share the email id
 
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iamabhisekagar said:
Hi, I have a question... My home loan is linked to repo rate changes, but the interest rate has not reduced by 0.25% as of now, despite the April month's rate cut. Does anyone have any insights regarding this?
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Which bank? Some banks take their time to implement the changes. PSUs implement it in a couple of weeks, privates have their own timeline, some banks make changes quarterly
 
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