EMIs on home and vehicle loans will come down, making it easier for individuals to repay their debts. A lower repo rate makes borrowing cheaper for individuals and businesses, which can lead to increased spending and investment.

The RBI Governor Sanjay Malhotra delivered the first interest rate cut in nearly five years. The RBI MPC reduced the repo rate cut to 6.25% from 6.50%.

The repo rate is the rate at which commercial banks borrow from the RBI. This drop comes after nearly 5 years of house loan borrowers seeing only rate increases or stagnation. Following the reduction in the RBI repo rate,