Good news, loan EMIs to come down, RBI decides to slash interest rates 

NEW DELHI: The Reserve Bank of India has reduced the base interest rate by 0.25 percentage points. With this, the repo rate has changed from 5.5 percent to 5.25 percent. Due to this, the interest rates on housing and personal loans will be reduced for the next two months.

The monthly repayment (EMI) or repayment period of loans may be reduced. The interest rate on new fixed deposits may also be reduced accordingly. The new interest rate will be applicable only on new deposits or renewal of existing ones at the end of their term.

The next Monetary Policy Committee (MPC) of the Reserve Bank of India is scheduled to meet from February 4 to 6. In 2025, the MPC meetings held in February, April and June had reduced the interest rate by a total of one percentage point. The decision to reduce the interest rate was taken unanimously by the six-member MPC.