Kunal Varma, Co-Founder and CEO, Freo

A rate cut is always a mixed bag, depending on which side of the table you’re on. For borrowers, especially those with home, car, or personal loans on floating rates, it’s welcome news, your EMIs might come down a little, which always helps. It can also encourage more people to take loans, whether it’s to buy a home or fund personal needs.

But for savers, especially those who rely on fixed deposits, it may mean slightly lower returns going forward. So, if you’re planning to lock in a good FD rate, this might be the right time. All in all, it’s a signal that the RBI is trying to support growth while still being mindful of inflation and financial stability.

Sahil Lakshmanan, Chief Business Officer, CarePal Money

“The RBI’s decision to keep the repo rate unchanged at 6.50% for the eighth consecutive time underscores its resolve to achieve price stability while supporting economic growth. For the healthcare financing sector, this pause ensures predictability in capital costs for lending partners, which is critical for delivering affordable credit products to patients and their families. India’s healthcare system still faces a massive financing gap, with out-of-pocket expenditure accounting for nearly 48% of total health expenditure. At CarePal Money, we are witnessing strong demand for 0% interest medical loans—not just for planned treatments but increasingly for emergency and reimbursement financing.

The RBI’s cautious stance, supported by moderating inflation and resilient GDP growth, creates a stable environment for NBFCs, fintechs, and lending marketplaces like ours to expand healthcare credit penetration. Furthermore, the continued liquidity support measures and emphasis on financial inclusion provide the structural tailwinds necessary to scale our impact across Tier II and III cities, where medical financing needs are the most acute. As the central bank works towards anchoring inflation closer to the 4% target, households can better plan for medical contingencies without the fear of rising borrowing costs.”

Pramod Kathuria, Founder and CEO of Easiloan

“Lowering the repo rate to 5.25% represents a definitive shift by the RBI to further stimulate growth considering the declining inflation, now 3.2%. This is good news for home loan borrowers. A lower repo rate usually means reduction in the lending rates and thus, both existing and new borrowers stand to benefit from lower EMIs. For example, a 20-year home loan of ₹50 lakh would see monthly EMIs shrink by more than ₹1,500, which amounts to a total saving of nearly ₹4 lakh over the loan period, if the rate is cut by 0.50%.

But, other depositors might have to bear the brunt of further cuts in the Fixed Deposit rates which would impact income from interest especially for the Retired. As a more prudent approach, it would be better to allocate some of the money into investments that offer returns above inflation while protecting the principal.

They may also consider prepaying some of the loan, or increasing the EMI marginally to shorten the duration of the loan, thereby lowering the interest paid. With the RBI changing stance to Neutral, future cuts will be more data driven, thus it might be a good time to secure lower rates or revise repayment plans.”

In general, a rate cut offers respite and enables borrowers to rethink their financial plans, but on the other hand, it requires caution from savers trying to maneuver through low interest rates.”