RBI Cuts Repo Rate to 6% Today — How Much Your Home Loan EMI Falls From May 2026

RBI MPC announced a 25 bps rate cut on April 7, 2026 bringing the repo rate to 6.00% — the lowest since 2020. Exactly how much EMI will fall on your home loan, when banks will revise, and what to do now.

The Reserve Bank of India's Monetary Policy Committee announced a 25 basis points rate cut on April 7, 2026 at 10:00 AM IST, reducing the repo rate from 6.25% to 6.00%. This is the first rate cut since May 2020 when the RBI had cut aggressively during COVID-19. The decision was unanimous — all 6 MPC members voted for the cut. Governor Sanjay Malhotra cited inflation at 3.6% (well within the 4% target) and slower GDP growth of 6.4% in Q3 FY2026 as the key reasons. The RBI signalled one more 25 bps cut possible in the June 2026 meeting.

The cut was widely expected. Every major brokerage — Kotak, Morgan Stanley, HSBC, Goldman Sachs India — had the April cut in their base case. What surprised markets was the governor's tone: he described the global environment as "accommodative for an extended easing cycle" which is read as a signal that June 2026 will also see a cut. Sensex jumped 600 points and Nifty Bank rose 1,250 points on the announcement.

Most home loans in India are linked to the Repo Linked Lending Rate (RLLR). Banks are required by RBI mandate to pass on rate cuts within one reset cycle — typically 1-3 months. For SBI, HDFC and ICICI borrowers: expect EMI revision notification in May 2026. Exact EMI savings calculation: For every ₹10 lakh of outstanding home loan, a 25 bps cut saves approximately ₹150/month on a 20-year loan. So: ₹20 lakh loan → ₹300/month saving | ₹40 lakh loan → ₹600/month saving | ₹50 lakh loan → ₹750/month saving | ₹75 lakh loan → ₹1,125/month saving.

What you should do today: (1) Check if your home loan is on floating rate RLLR — if you are on fixed rate you will not benefit. (2) Call your bank to confirm your reset date. (3) If you have a personal loan or car loan at high interest, this is a good time to refinance. (4) SIP investors — do not stop SIPs. Rate cuts boost equity markets over 6-12 months and your mutual fund NAVs should benefit. (5) FD investors — lock in current rates before banks lower them. Kotak and Axis Bank are at 7.25-7.40% for 2 years — act before May.