Cut home loan costs: Retain EMI, shorten tenure, consider prepaying
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar said public-sector banks had recently passed on rate cuts faster than private banks, noted that lower rates raise loan eligibility, and suggested keeping the EMI unchanged and shortening the tenure to save more on interest.
More of Abhishek's views on debt and loans
After the RBI cut the repo rate to 5.5%, the article explains how lower rates reach home loan borrowers, with repo-linked loans adjusting fastest and MCLR-linked loans lagging. It discusses whether to cut the EMI or the tenure, the costs of switching to an external benchmark, and when prepaying makes sense.
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Cut home loan costs: Retain EMI, shorten tenure, consider prepaying