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.

The Reserve Bank of India (RBI) reduced its key repo rate on Friday for the first time since May 2020, aiming to provide stimulus to the sluggish economy, which is projected to grow at its slowest pace in four years during the current fiscal year.

After the Union Budget, the RBI did the job of aiding expenditure and consumption by cutting the benchmark interest rates on February 7. The central bank, under its new governor Sanjay Malhotra, cut the repo rate by 25 basis points,