If you’re on a fixed rate, you might want to evaluate if switching to a floating rate makes sense, depending on market conditions and your remaining loan tenure.

The move is expected to boost sectors such as real estate, which depends heavily on loans for its consumers to make a purchase.

EMIs on home and vehicle loans will come down, making it easier for individuals to repay their debts. A lower repo rate makes borrowing cheaper for individuals and businesses, which can lead to increased spending and investment.