Four scenarios on a ₹50 lakh home loan over 20 years, showing how a change in the RBI-linked benchmark and the bank's spread (markup) move the final rate and EMI in opposite directions.
| Before | RBI cuts 25 bps only | Spread rises 50 bps only | Both happen | |
|---|---|---|---|---|
| Benchmark | 6.50% | 6.25% | 6.50% | 6.25% |
| Spread | 1.50% | 1.50% | 2.00% | 2.00% |
| Home-loan rate | 8.00% | 7.75% | 8.50% | 8.25% |
| Loan amount | ₹50 lakh | ₹50 lakh | ₹50 lakh | ₹50 lakh |
| Tenure | 20 yrs | 20 yrs | 20 yrs | 20 yrs |
| EMI | ₹41,822 | ₹41,047 | ₹43,391 | ₹42,603 |
| Change vs starting EMI | — | − ₹775 | + ₹1,569 | + ₹781 |