Are you in a hurry to take a loan, Loans can become cheaper now, the RBI can give good news

In the coming days, the RBI can give good news again and reduce the repo rate further. This simply means that in the coming days, all types of loans are going to be even cheaper for you. How much can the repo rate can be?

The year 2025 has been very good for loan takers. In the month of February and April, the Reserve Bank has reduced the repo rate twice, in such a situation loans have also become cheaper. But if you have not taken a loan and are thinking of taking it, then wait a bit because in the coming days RBI can give good news again and can reduce the repo rate further. This simply means that in the coming days, all types of loans are going to be even cheaper for you. This information has come out in a report by SBI Research on Monday.

1.25 percent to 1.50 percent cut by 2026

The report said that due to continuously decreasing inflation, the Reserve Bank of India (RBI) can aggressively reduce interest rates. Also, the monetary policy stance can be further softened by removing it from 'neutral' by March 2026. The report said that in the best case scenario, if the inflation rate remains below 3 percent for three consecutive months, then a cumulative cut of 1.25 percent to 1.50 percent in the repo rate can be seen by FY 26.

Repo rate can reach 5 to 5.25 percent

The SBI report said, inflation was at its lowest level in many years in March and inflation is expected to remain low going forward as well. We are expecting a reduction of 0.75 percent in the repo rate in June and August (first half) and 0.50 percent in the second half. The report further said that by March 2026, the repo rate could come down to 5 to 5.25 percent. The report said that a big cut of 0.50 percent would be more effective than a small cut of 0.25 percent.

RBI has started the cut from February 2025

The central bank started cutting the repo rate in February 2025, since then RBI has reduced interest rates by 0.50 percent. According to the report, in the coming time, bank deposit rates may be cut by up to one percent from the current levels. The domestic inflation rate is currently in the range of RBI's target of 2-6 percent, while the average inflation rate based on available data is 4.7 percent.

SBI Research further said that it expects the rupee to remain stable in the range of 85-87 against the dollar by 2025. The report said that the domestic impact of tariffs on the dollar will be visible in 2025, which will support the rupee. Additionally, the DXY is expected to decline as the US domestic economy adjusts to the tariff impact.