As the Reserve Bank of India (RBI) prepares for its next monetary policy decision, industry watchers are abuzz with the possibility of a bold 50 basis points (bps) repo rate cut—a move not seen in recent policy cycles. While a typical rate cut provides moderate relief, a so-called “jumbo cut” of 50 bps could have wide-ranging implications across home loan affordability, refinancing trends, and real estate investment. With inflation pressures contained and growth concerns rising, stakeholders are debating whether such a move would catalyze demand or simply dampen savings further.
The current lending ecosystem is already in flux—home loan borrowers are increasingly opting for repo-linked instruments, property developers are navigating both demand and oversupply issues, and savers are reeling under historically low deposit rates. Amid this shifting financial terrain, we spoke to experts across the housing and real estate spectrum to understand how this anticipated cut could affect home buyers, developers, and the broader economy. Here’s what leading voices had to say:
Expert Opinions
Mr. Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Private Limited
“If the RBI were to look at a possible 50 bps ‘jumbo cut’, it could create a signalling effect for how loans are determined affordable, but it also needs forethought as set out below. Potential borrowers could see their EMIs decrease in the order of ₹800–₹1,200 per lakh depending on whether they are on a floating-rate loan, and it would immediately improve their liquidity. However, deposit rates could go down from already near record levels of 2.7% on savings for conservative savings which could compromise savers. Depreciation of the rupee, with CPI inflation linked to FY26 at 3.5%, may not even become a large factor if they choose to refinance their existing high cost debt or move a loan to the repo rate. As issues with uncertain global tariffs and fiscal deficits are increasing, I would say moderate the expected transmission effects of this proposed cut when and if it occurs. With the mention of the term deposits I would act as quickly as possible, and borrowers should be aware of their reset clauses to derive the most benefit.”
Mr. Anurag Goel, Director, Goel Ganga Developments
“Quick EMI relief is likely if RBI goes for a 50 bps cut! If one takes a repo-linked home loan, the same could be reprice in about 1–3 months bringing down monthly outgo by ~₹1,200 per ₹50 lakh over 20 years. MCLR-linked home loan borrowers will be able to benefit in the end, but not until banks re-adjust. I think the affordable segment and first-time home buyers in Tier-2/3 cities will benefit the most since affordability is improving alongside infrastructure growth. In this latest analysis of the industry, the bottom line, cumulative cuts in this cycle could reach 100 bps—so now is the time for entry and definitely. But, lenders may (and are likely) given the choice tend towards tenure reduction as opposed to EMI reductions—use your negotiation power on your application.”
Mr. LC Mittal, Director, Motia Builders Group
“Expect demand for refinancing to skyrocket post-policy! A third cut in succession would widen its gap with existing loans versus new rates, which would make balance transfers very sensible, especially for loans above 8%. Analysts and experts on the topic are suggesting that borrowers with 50%/more of the tenure left, compare… lenders lending rate, before refinance becomes normal; if borrowing ₹50 lakh loan, you can save over ₹7 lakh in tenure. But, some non-bank lenders may delay rate cuts for their riskier lending segment, due to their legacy liquidity issues. Compare processing fees against savings on paying off existing loan, your lender’s profile. Target banks’ half-solutions that offer automatic repo-linking and have no friction to renegotiate monthly.”
Mr. Aman Gupta, Director, RPS Group
“Metro markets might disregard a 50 bps cut as being ‘too little, too late’. Given that EMI burden is already consuming 55% of income in major cities, any rate reductions will be too late to offset pricing stagnation. Developers have already pushed rates up by another 3–5%, as the flagging interest was creeping back towards affordability anyway. Investor yields are likely to worsen again, as lower rates will make buying not renting more appealing—yields are now below 2.6%. The real game-changer? Potentially more meaningful sites like Jewar or Dholera, where stagnant entry prices combined with good infrastructure links, will amplify the impact of financing perks—in and around transit stations, a 15–20% increase in sales could be achieved.”
Mr. Keshav Mangla, GM – Business Development, Forteasia Realty Pvt. Ltd
“An aggressive easing by the RBI could help kickstart construction financing but will not address the key issues at hand. While lower borrowing costs may incentivize developer sales in peripheral areas, the Tier-1 oversupply remains. It is also critical to note that the current lending tightness in housing finance could stifle transmission to affordable housing. If there is any surge of investor flows, it will occur in projects with national infrastructure highway connections or logistics parks. To keep things going, the RBI needs to complement cuts with injections of liquidity because a huge systemic surplus is needed before banks can unlock credit for stalled mid-income housing projects.”
Way Forward
While a 50 bps repo rate cut may offer visible benefits to borrowers—particularly those with floating-rate home loans or in early stages of repayment—it comes with layered implications for the broader economy. Experts agree that refinancing demand will spike, especially in Tier-2 and Tier-3 cities, where infrastructure growth is unlocking housing potential. However, the benefits won’t be equally shared. Savers may suffer from lower deposit returns, and those in metro cities could see minimal short-term impact due to already strained affordability levels and oversupply concerns.
Image source- thehindu.com
