After RBI rate cut, should you reduce EMIs or shorten loan tenure?

Last Update Date: 06-10-2026

Published by Business Standard

Abhishek Kumar's role: Quoted

Abhishek Kumar suggested that new borrowers shop around and compare what different lenders charge for their credit score. He also said fixed deposit investors could ladder deposits across tenures to adapt as rates change.

After the RBI cut the repo rate by 25 basis points in February 2025, the article explains how repo-linked and MCLR-linked home loan borrowers may benefit and how to choose between a lower EMI and a shorter tenure. It also discusses what new borrowers and fixed deposit investors should consider as rates fall.

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After RBI rate cut, should you reduce EMIs or shorten loan tenure?

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