EMI is the first thing that comes to mind while planning to take a loan or paying for an ongoing loan. Following the RBI's decision to cut rate, EMI are also set to get relaxed, and the pressure is expected to ease.

While RBI has reduced the repo rate, banks also may lower the interest rate by 25 basis points. If the banks reduce the interest rate on loans, it will benefit not only the new customers but also the existing ones.

The people already paying off their existing home loan on a floating interest rate may experience decline in their loan tenure or a cut in the monthly EMI.

For instance, if the interest rate on a floating home loan goes down from 10.75% to 10.50%,   your monthly EMI on a Rs 25 lakh home loan would come down by Rs 418. It will help in increasing your monthly savings.

Furthermore, as inflation follows the ongoing trend and is expected to go down to 6% by January 2016, the policy rates may go down by 100 bps. 

Similarly if, the interest rate on a floating home loan goes down from 10.75% to 9.75%, your may witness two things. Either your monthly EMI on a Rs 25 lakh home loan would significantly decrease by Rs 1656 or the loan tenure may go down by 40 months.

Now taking into account the car loan customers, the ongoing car loan will not experience any change in their EMI as car loans have fixed interest rates. But it may prove an excellent opportunity for new customers.