Giving relief to the people before the New Year, the Reserve Bank of India has reduced the repo rate by 0.25%. The benefit of lower repo rate is immediate, because it directly reduces the EMI of the car loan. Even before this, RBI had reduced the repo rate in the months of February, April and June in 2025. Now after the new deduction, the EMI of car loan has become lower than before. Let us know in detail.

What is the new car loan interest rate of SBI?

• According to the SBI website, till October 13, 2025, the car loan interest rate was 8.75%, but after the cut of 25 basis points by RBI, this rate has come down to 8.50%. Even this small reduction in interest rate has a noticeable impact on EMI and results in good savings in the long run.

How much is the EMI reduced on a car loan of Rs 10 lakh?

• If a customer takes a car loan of Rs 10 lakh for 5 years, then earlier he had to pay EMI of Rs 20,673 every month at 8.75% interest. Now at the new rate of 8.50%, EMI has reduced to Rs 20,517, which saves about Rs 120 every month.

How much less will the EMI be on a loan of Rs 15 lakh?

• Earlier the EMI on a car loan of Rs 15 lakh was Rs 30,956. After the implementation of the new 8.50% rate, this EMI has reduced to Rs 30,775. In this way the customer gets a saving of Rs 181 every month.

How much relief will be available on car loan of Rs 20 lakh?

• According to the earlier 8.75% interest rate on a loan of Rs 20 lakh, the EMI was Rs 41,274. Now this EMI has reduced to Rs 41,033. That means there will be a direct saving of Rs 241 every month, which becomes a good amount in a year.

Also read: From Tata Nexon to Syros, these are the top mileage king diesel SUVs of India, know which one gives the highest mileage

GDP Growth Forecast: Reserve Bank of India (RBI) Governor Sanjay Malhotra has announced the reduction in repo rate on Friday, December 5. The Monetary Policy Committee (MPC) has decided to reduce the repo rate by 25 basis points to 5.25 percent. He also estimated that the GDP growth for the current financial year 2026 will be 7.3 percent. GDP growth has been increased from 6.8 percent to 7.3 percent. The inflation estimate for the third quarter of the financial year 2025-26 has been increased from 6.4 percent to 7 percent and for the fourth quarter from 6.2 percent to 6.5 percent.

RBI Governor gave information

RBI Governor informed that the domestic economic activities of the country are going on at a good pace. Demand in rural areas remains strong, while demand in cities is gradually improving. In the matter of repo rate, the Monetary Policy Committee has unanimously decided to cut interest rates. Under this, a reduction of 25 basis points has been made. Giving further information, Sanjay Malhotra said that before taking the decision of rate cut, MPC studied the changing macro economic situation and future possibilities in detail and on this basis all the members have taken the decision of rate cut.

Mentioned about GST reform and strong consumption

According to the RBI Governor, the country’s second quarter GDP growth accelerated due to strong consumption and reforms in GST. He said that retail inflation has come down to 0.25 percent in October 2025, which is the lowest level till date.

There was no change in the repo rate in the last monetary policy meeting on October 1. The committee had taken the decision to keep the repo rate stable at 5.5 percent.

How much did the repo rate decrease this year?

RBI had reduced the repo rate by a total of 100 basis points between February and June this year. That means interest rates were reduced from 6.5 percent to 5.5 percent. After this, no changes were made in the policy meetings of August and October and it was decided to keep the repo rate stable.

Also read:

Gold Price Today: Is gold expensive or cheap today? Know how much you will have to spend to buy gold on December 5

Rbi on indian economy: The Reserve Bank of India (RBI) has decided to maintain the repo rate at 5.5 percent, keeping in mind the existing domestic and global conditions. Governor Sanjay Malhotra announced this at a press conference after a three -day Monetary Policy Committee (MPC) meeting on Wednesday. He informed that the attitude of monetary policy has been kept neutral, which means that the central bank will maintain flexibility in rates according to the changing economic situation. Let us know ten big things of RBI Governor Sanjay Malhotra-

1-RBI, while presenting the economic picture of the country, has increased the estimate of GDP growth from 6.5 percent to 6.8 percent. This is definitely good news for the country, because since the American high tariff, the economic front is facing challenges. While the estimate of retail inflation has been reduced from 3.1 percent to 2.6 percent. This is the second consecutive time when there is no change in the repo rate.

2- Governor Malhotra said that due to the repo rate being stable, there is no possibility of change in interest rates of housing, vehicles and other retail loans at the moment.

3-He also informed that from February to June this year, RBI has already reduced the repo rate by 1 percent, due to which there has been a decrease of 0.58 percent in the borrowing cost of new loans.

The 4-RBI further stated that India’s foreign exchange reserves have reached $ 700.2 billion, which is sufficient for imports of about 11 months. Also, in the second quarter of the current financial year, domestic economic activities are expected to be raised.

5-Governor admitted that challenges remain globally, but better monsoon, GST rate cuts and other policy measures will lead to inflation and economic growth will gain momentum.

6-Central bank believes that low inflation and monetary softening will lead to both investment and consumption.

7-Now it is clear that the RBI is in “Weight and Watch” mode-that is, at the moment the direction and global situation of the economy will be monitored with stable rates.

RBI Repo Rate Cut: The Reserve Bank of India (RBI) is scheduled to hold the next meeting of the Monetary Policy Committee (MPC) from 29 September to 1 October, on which the entire country is eyeing. The Reserve Bank has cut the repo rate by 100 basis points from February to June. After this, there has been no change in interest rates in the meeting which lasted from August 4 to 6. Now the whole focus is on the next meeting.

Does the repo rate expect to decrease?

Nomura analysts hopes that the RBI will reduce the repo rate by cutting the repo rate by cutting the repo rate by decreasing the negative impact of inflation and US tariffs to make it 5.25 percent. Nomura says that inflation remains significantly below 4 percent, which is getting scope to relax policy and support domestic demand amidst the external risks of RBI. The GST deduction implemented from 22 September has promoted conjunctions during the festive season in many sectors such as small cars, home appliances and e-commerce.

Trump’s tariff pressure

In contrast, 50 percent of American tariffs are pressurizing exporters, especially small companies on effective Indian exports from 27 August. The August trade figures have already seen a decrease in export to America. Nomura has warned that if the trade tension continues, India may have to face a recession in job reduction, closure of factories and investment, which is likely to appear in the second half of FY 2026.

30 percent possibility of not changing the rate

Global brokerage company Nomura has expressed 70 percent possibility of cutting a 25 basis points in the repo rate in October and has expressed 30 percent possibility of no change in the rate by the RBI. Nomura says that the MPC may wait until December to assess the entire impact of changes in American tariffs and GST before taking any further steps. Nomura emphasized the need for multidimensional policy response to support expoters, regulatory reforms, monetary policy and by mixing fiscal deficit targets to maintain the pace of development in the country and combat external risks.

RBI Repo Rate Cut: Giving a big gift from the RBI on Friday, the repo rate has announced a cut of 50 basis points to the market estimate. With this, all kinds of loans and EMIs including home and car will become cheap. On the one hand, while the RBI hopes that their move will give a new pace to the economy, on the other hand, expectations are jumping in the real estate market. Real estate experts say that this step of RBI can prove to be a new booster dose for the real estate sector.

Confidence will come in home buyers

Trehan Summary Summary of Trehan Group Trehan says that the RBI’s decision to reduce the repo rate by 50 basis points to 5.5% is a welcome step. This is a strong sign of support for India’s economic pace. He said that this is a timely encouragement for the real estate sector, which will bring significant improvement in residential capacity and the spirit of buyers. Low interest rates have a direct impact as a decrease in monthly installments (EMI), so that potential home buyers will be able to decide to buy more confidence.

Summary Trehan further said that this development is especially beneficial for those who buy homes and will promote the demand for affordable and mid-segment housing. From the point of view of developers, easy credit availability will help to smooth the implementation of projects and increase liquidity. We believe that this rate deduction will revive the realty sector, together with the government’s infrastructure and continuous attention to urban development, and will contribute significantly to India’s development saga.

Loan will be available at better rate

Pankaj Kumar Jain, director of KW Grayup, says that the cut of 50 BPS at the repo rate is going to be better for the real estate sector. The reason for this is that RBI has done this to encourage domestic personal consumption. EMI will be reduced and home loans will be available for new home buyers at a better rate. These will be a major relief for buyers as property prices are continuously rising and home buyers can get relief from reducing interest rates by RBI.

Balance in market and inflation

Vikas Garg, managing director of Ganga Realty Group, believes that a large cut of repo rate 50 basis points from RBI will not only indicate this sector to this sector, but especially the demand is expected to increase the demand between mid-incoured and first-time homebayers. This step will give stability to the residential market and will speed up demand. Also, decrease in the cost of capital for developers will facilitate the implementation and funding of projects.

RBI’s move will prove to be a booster dose

While JP Infratech Limited Executive Director Jas Panchamia says that this decision of RBI is clearly promoting consumption and investment. At a time when especially the central bank has completely controlled inflation. In such a situation, after this decision of MPC, now commercial banks will give loans at cheap rates, so that the real estate sector will work as a booster dose.

Also read: RBI’s big gift: All kinds of loans and EMI will be cheap, cut in repo rate by 50 basis points

Repo Rate Cut: This is a big relief news for people who take borrowings or pay EMI on loan. The Reserve Bank of India has announced a cut in the repo rate on Friday, more than the market expectation. After the two -day meeting of the RBI, which started from June 4, the Central Bank has reduced the repo rate for the third consecutive time, giving a huge gift to the people and has cut 50 basis points i.e. 0.50 percent this time.

After this, now the rape rate has come down to 5.5 percent. After this decision of the central bank, all kinds of loans including car-home will become cheap. RBI cut the repo rate and said that their move will give investors a lot of opportunity. The Indian economy will be strengthened amidst the sluggish speed of global growth. Domestic demand will be further strengthened.

This is the third cut in the repo rate in six months from the RBI. Earlier this year, 25 basis points were cut in February this year and then in April 25 basis points were cut. After which the repo rate came to 6 percent.

The three -day important meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has started from 4 June. Meanwhile, the global brokerage firm Nomura has introduced a major estimate, in 2025 the RBI repo rate can cut 100 basis points (BPS). This estimate is twice the general opinion of the market, which was assuming a cut of just 50 BPS.

Meeting under the leadership of RBI Governor

The meeting is being held under the chairmanship of RBI Governor Sanjay Malhotra and its decision will come on 6 June. This time everyone’s eyes are on whether RBI will cut the repo rate for the third consecutive time. The special thing is that at present, the inflation rate remains below the target level of 4 per cent, which strengthens the possibilities of cutting interest rates.

Cut twice so far

In the last two meetings, RBI has reduced the repo rate by 6 percent by cutting a total of 50 BPS. Nomura says that RBI can get a chance to further cut due to the recession and inflation in the economy being below the target level.

According to Nomura, GDP growth FY26 is expected to be 6.2 per cent (RBI is estimated at 6.5 per cent). Inflation is estimated to be 3.3 percent (target is 4 percent). In this sense, there is a need to bring policy rates to “neutral”, but to “encouragement zone”.

Estimates of 25bps cut every quarter

Nomura believes that RBI can cut 25bps in the remaining four monitoring policy reviews (June, August, October and December) of the year. In this way the repo rate can come up to 5.00 percent. Apart from this, adequate liquidity will remain in the banking system, around 1 percent of NDTL, which will see the effect of interest rates quickly.

RBI will not be affected by America’s decisions

RBI has already made it clear that its monetary policy decisions are based on domestic economic conditions, not the policies of countries like America. Nomura also believes that even though the US Federal Reserve does not change its rates Q4, RBI will run on its way, because India’s situation is different. At the same time, India’s current account deficit (CAD) is estimated to be around 0.6 percent in FY26, due to which there is no major challenge about funding. Although GDP growth in Q1 2025 was 7.4 percent, according to the report, the pace of personal consumption and capital expenditure was slow.

There is weakness in urban consumption

Credit growth and real income growth is also slow. Whereas, global uncertainty, the glut of Chinese goods and the lethargy of private investment are also a matter of concern. Nevertheless, low inflation, decline in commodity prices and strengthening of services may balance India’s growth.

CPI may come below 3 percent

From January to April, CPI inflation has been 3.6 percent on an average. Nomura says that it can go below 3.0 percent in the next six months. In addition, the prices of food items have decreased. Core inflation is also controlled. There is also softening in increment and input cost. In FY26, CPI can be 3.3 per cent on an average, which is much lower than the estimate of 4 per cent of both RBI and the market.

Also read: Business Idea that gives money to tear money! Buy an auto rickshaw and earn 8 lakh rupees a month without running