The RBI cut the repo rate. Why has my home loan rate not fallen?
The RBI cut the repo rate four times in 2025 and your home-loan rate did not fall the same day. That is not a bank holding the benefit back by default. It is how the loan works: a repo-linked loan is repriced at its reset date, at least every three months, so a cut reaches you at the first reset after it. This page shows how long that wait is for each decision.
When did each RBI decision reach a quarterly-reset loan?
| RBI decision | Repo after | First reset on or after | Wait |
|---|
Reset dates are estimated from the month pattern you choose, at the 15th. A lender may apply a decision a few weeks after the reset date; if your rate has not changed by then, ask your lender in writing which benchmark value and date it used.
If your rate still has not moved
- Check that your loan is EBLR / repo-linked. MCLR and Base Rate loans follow the lender's own cost of funds and reset less often, so a repo cut shows up later or by less.
- Find your last reset month on your statement (see how to find your reset date).
- If your loan is repo-linked and has reset since the cut with no change, ask the lender for the benchmark rate it applied and the date. Put it in writing.
- Lenders must reset external-benchmark loans at least once every three months under RBI's external benchmark framework.
Questions
Why has my home loan interest rate not come down after an RBI rate cut?
Because the loan only reprices at its reset date. On a repo-linked loan that is at least every three months, so a cut announced just after your reset can take close to three months to reach you. MCLR loans can take longer.
Is my bank obliged to pass on a repo rate cut?
For repo-linked (EBLR) loans, the rate is the benchmark plus a spread, and the loan is repriced at least every three months under RBI's external benchmark framework. If your rate has not moved after a reset, ask the lender which benchmark value it applied.
Does a cut reduce my EMI or my tenure?
Usually the tenure, if your lender keeps the EMI unchanged. RBI circular RBI/2023-24/55 requires lenders to offer you the choice between changing the EMI and changing the tenure.