Interest Rates Dropped, So Why Isn't Your EMI Lower? Find Out

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Interest Rates Down, But Why Isn't Your EMI Falling? Uncover the Reasons

Interest Rates Down, But Why Isn't Your EMI Falling? Uncover the Reasons

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News18•04-03-2026, 17:28

Interest Rates Down, But Why Isn't Your EMI Falling? Uncover the Reasons

•EMI reduction depends on your 'loan agreement' terms, not just immediate RBI rate cuts.
•The 'reset date' for your loan delays EMI changes; rate cuts reflect only after this scheduled period.
•Banks often extend loan tenure when rates rise, but maintain it when rates fall, benefiting them.
•Older loans linked to MCLR or Base Rate see slower benefits; EBLR loans respond much faster.
•In initial years, a large portion of your EMI covers interest, making later rate cut impacts less noticeable.

Read Full Article on News18 in Hindi

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