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.

While new borrowers can expect banks to revise their rates soon, existing borrowers will typically see the benefit at their next reset date, which could be in six or twelve months, depending on their loan agreement.

The former revenue secretary in the Ministry of Finance, Malhotra is expected to announce the cuts to lower interest rates for economy’s growth which is expected to reach a four year low.