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RBI Rate Cut to Improve Sales of Affordable, Mid-Income Housing Properties: CREDAI

On June 7, 2025, the Reserve Bank of India lowered the benchmark interest rate by half a percentage point to 5.5%, aiming to encourage increased lending across various sectors, including housing.
This move follows a total 100 basis point reduction in the repo rate since February 2025 amid sluggish sales in affordable and mid-income housing segments.
Several banks, including Bank of Baroda and Bank of India, have lowered their home loan borrowing costs and cut their Repo Linked Lending Rates , extending these advantages to both new applicants and current borrowers.
CREDAI leaders forecast this rate cut will improve buyer sentiment, expecting a 5-10% rise in housing demand, especially in Kolkata’s affordable housing market where unsold units declined to 12,783 in March 2025.
The policy is expected to lower borrowing costs, improve financial viability of housing projects, and boost sales momentum, signaling renewed confidence in the real estate sector and allied industries.

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Financial Express

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Cheapest home loans in June: THESE banks charging lowest interest rates after RBI rate cut

Following the RBI’s 0.50% repo rate cut, many banks have lowered home loan interest rates. This move brings relief not just to new borrowers but also to existing ones, as EMIs are expected to reduce, easing the repayment burden.

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aninews.in

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21 days ago·India

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Latestly

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RBI Rate Cut to Spur Kolkata Housing Demand by 5-10pc: CREDAI

Get latest articles and stories on Latest News at LatestLY. The Reserve Bank of India's decision to cut the repo rate by 50 basis points to 5.5 per cent, along with a 100 basis points reduction in the cash reserve ratio (CRR), is set to boost housing demand in Kolkata's residential property market by 5-10 per cent, particularly in the affordable segment, real estate developers said on Friday. Latest News | RBI Rate Cut to Spur Kolkata Housing De…

21 days ago

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Bloomberg

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RBI’s Big Rate Cut Seen Boosting Demand for Houses, Automobiles

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