RBI rate cut a boon for borrowers? Know how your EMIs will be impacted

Here's how borrowers are likely to gain from RBI's rate cut, subject to banks, non-banking financial companies passing on the benefits to customers

In a major relief for borrowers, the Reserve Bank of India (RBI) on Friday lowered the repo rate by 40 basis points from 4.4 per cent to 4 per cent. The reverse repo rate was also reduced to 3.35 per cent. These rate cuts were made in order to limit the impact of the nationwide coronavirus lockdown on the economy. Borrowers, especially those whose loans are linked to external benchmarks like the repo rate can rejoice.

The apex bank last cut the rates in its March 2020 in an advanced monetary policy review. In total, it has cut the repo