Home loan in Vijayawada is one of the biggest financial milestones for most homeowners. If you’ve already taken one, you know that managing EMIs wisely is just as important as getting the loan itself. While timely payments are essential, very few realize that with the right planning, you can actually reduce your overall interest burden, even without switching lenders.

With the RBI’s new rule effective from October 1, 2025, homeowners now have more flexibility to lower their home loan rates and save big on long-term interest costs. Let’s break down what’s changed, and how you can make the most of it.

RBI’s New Rule: What It Means for Home Loan Borrowers

Earlier, banks could only revise the spread (the extra percentage added to your benchmark interest rate) once every three years. That meant even if your credit profile improved, you couldn’t immediately benefit from lower rates.

But now, thanks to the RBI’s rule update, banks can review and reduce your spread at any time, as long as your creditworthiness has improved or you can show a better offer from another bank.

This applies to existing floating-rate home loans, not just new ones.

In short: If you’ve been paying EMIs regularly and maintaining good credit, you may qualify for a lower interest rate without refinancing your loan.

(Read the full RBI update on Business Standard)

How to Use This Change to Your Advantage

Here’s a simple, step-by-step approach to lowering your home loan interest under the new rule.

1. Check Your Loan Type

Make sure your loan is on a floating rate. Fixed-rate loans don’t qualify for this benefit.

If your spread hasn’t been revised recently, you’re in a good position to request a reassessment.

2. Showcase an Improved Credit Profile

Your lender is more likely to cut your rate if your financial profile has improved.
You can strengthen your case by:

• Paying all EMIs and credit card bills on time
• Reducing unsecured debt
• Increasing your income or business turnover
  
  

This gives the bank confidence that you’re a lower-risk borrower.

3. Compare Competing Offers in Vijayawada

Don’t just rely on one bank’s rate.
Get updated home loan quotes through loan agents in Vijayawada; they’ll help you compare offers across multiple lenders quickly.

If you show your current lender that other banks are offering lower rates, they’ll often match or beat them.

4. Request a Spread Review

Approach your lender formally and request a spread reduction, citing:

• The RBI’s new rule
• Your improved credit score
• Better offers from competitors
  
  

Also, ask for a waiver of repricing charges; banks often agree, especially for reliable borrowers.

5. Keep Reviewing Your Loan

Interest rates are not static. Set a reminder every 12 months to review your spread and benchmark. A small adjustment now could save you lakhs over your tenure.

Common Mistakes Borrowers Make

Many homeowners miss opportunities simply because of these mistakes:

• Waiting for the bank to act automatically
• Not updating income documents when requesting a rate cut
• Ignoring advice from experienced loan agents in Vijayawada
  
  

Avoid these, and you’ll already be ahead of most borrowers.

How Lendly Helps You

At Lendly, we specialize in helping borrowers in Vijayawada make smarter decisions about their home loans.

Here’s how we make it easier:

• Compare real-time home loan rates from top lenders
• Help you understand and leverage new RBI rules
• Assist in negotiations and paperwork for rate reduction
• Offer continuous guidance throughout your loan tenure
  
  

Whether you’re taking a new home loan in Vijayawada or trying to reduce your existing interest rate, our team ensures you save more and stress less.

Final Thought

The RBI’s rule change is a big win for borrowers, but only if you act on it. Review your loan, assess your credit, and talk to reliable loan agents in Vijayawada or Lendly experts to see how much you can save.

Every small percentage cut in interest matters, and with the right strategy, you can own your home faster and pay far less over time.