RBI slashes repo rate by 25 bps to 6%: Here's what it means for home buyers and others

The move is expected to provide relief to home, auto and corporate loan borrowers. Here's what experts have to say.

According to Binod Kumar, MD & CEO, Indian Bank, this cut is likely to spur demand for home, auto, and personal loans, especially in tier 2 and tier 3 markets, where interest sensitivity is higher. 

"Retail loans grew over 18 per cent YoY as per recent trends, and a lower rate environment could further accelerate consumption and support economic momentum. Indian Bank is fully geared to pass on the benefits swiftly and responsibly to our customers, ensuring inclusive credit growth," Kumar said.

Saransh Trehan, Managing Director, Trehan Group, said that the move will have a far-reaching positive impact on the real estate sector. 

"Lower borrowing costs will directly benefit homebuyers by making loans more affordable, thereby improving demand across residential segments. This reduction, especially in the current economic climate, will act as a strong enabler for both end-users and investors,” he said.

Siraj Saiyed, director of Arete Group, feels that the RBI's calibrated decision to cut the repo rate for the second time in a row is a clear signal towards supporting long-term economic stability amidst global uncertainties.

"While the immediate impact on industrial real estate may be neutral, the rate cut strengthens financing sentiment, which indirectly aids infrastructure expansion and large-scale park developments," he said.

Welcoming the RBI’s decision to reduce the repo rate to 6 per cent, Aman Sharma, founder and managing director of Aarize Group, said that the move reflects a prudent approach to balancing inflation and growth. 

"For the real estate sector, this policy move brings renewed optimism, as it enhances credit availability and lowers borrowing costs. It offers developers a stable financial environment to plan and execute projects efficiently while also reinforcing buyer confidence,” he said.

Santosh Agarwal, CFO & executive director of Alpha Corp Development Limited, said that the RBI’s move to adopt an accommodative stance is a timely and growth-supportive measure. 

"This decision is expected to inject greater liquidity into the market and bring down borrowing costs, thereby improving sentiment across the real estate sector. Amid global headwinds, including the recent U.S. tariffs of 26 per cent on Indian exports and a slower GDP growth rate of 6.5 per cent, this rate cut signals the central bank’s proactive approach to sustaining economic drive," Agarwal added.

According to Mohit Malhotra, founder & CEO, NeoLiv, lower interest rates enhance affordability, making the dream of home ownership more attainable. "This rate cut is likely to boost buyer sentiment and drive housing demand. Additionally, it provides an encouraging signal for new-age fund and development companies to invest further, strengthening the sector and supporting broader economic growth," he said.

Boman Irani, president, CREDAI National, said that the move reflects a continued shift toward a pro-growth stance amid easing inflation and a stabilizing macroeconomic outlook. 

"With CPI inflation expected to moderate to 4.5  per cent, the rate cut is well-timed to uplift consumer sentiment and enhance borrowing capacity—especially in the housing sector. It is likely to improve home loan affordability, stimulate housing demand, and provide a strong impetus to the mid-income and affordable segments, where interest rate sensitivity remains high. The RBI’s continued policy easing highlights its commitment to sustaining growth while safeguarding macroeconomic stability," Irani added.