Pune। Repo Rate Cut Gives Boost to Housing Sector; Major Relief for Homebuyers: Manish Jain

CREDAI Pune urges banks to pass on the rate cut to customers immediately

Pune: The real estate sector has reacted positively after the Reserve Bank of India (RBI) announced a 25-basis-point reduction in the repo rate, bringing the total rate cut for the current financial year to 125 basis points. Welcoming the decision, CREDAI Pune President Mr. Manish Jain said it would provide substantial relief to the economy as well as the housing sector.

Mr. Jain said, “The cumulative 1.25% reduction in the repo rate will significantly reduce borrowing costs, improve liquidity, and enhance business momentum. This move will further accelerate the economy.”

He explained that the impact of this decision would be immediately felt by homebuyers. Giving an example, he said that for a home loan of ₹75 lakh over 20 years, the monthly EMI could decrease by approximately ₹6,000. Over the full loan tenure, this could result in savings of around ₹15 lakh, thereby increasing home affordability and boosting consumer confidence.

Expressing that this could lead to a substantial rise in housing demand, Mr. Jain urged banks to act promptly in the interest of customers. “Banks must pass on the benefit of RBI’s rate cut to borrowers without delay,” he said. Immediate reflection of reduced lending rates would make home purchase more affordable and accessible for buyers, he added.

Reaction:

“RBI’s rate cut has opened a new door for homebuyers. The reduction in EMIs is not just financial relief but an opportunity that brings the dream of owning a home closer. It is now imperative that banks pass on this benefit to customers at the earliest.”
— Manish Jain, President, CREDAI, Pune.