The Reserve Bank of India (RBI) reduced its key repo rate on Friday for the first time since May 2020, aiming to provide stimulus to the sluggish economy, which is projected to grow at its slowest pace in four years during the current fiscal year.

The repo rate influences interest rates on loans, including home loans. When the RBI lowers the repo rate, banks typically reduce their lending rates, making home loans cheaper.

The repo rate cut, combined with the benefits from the revised tax slabs announced in the Union Budget 2025 for the new tax regime, is likely to boost loan eligibility and repayment capacity in the up