To boost your score, aim to pay your EMIs and credit card bills on time, avoid fresh credit applications unless essential, and keep your credit utilisation below 30%. (File)In the past four months, the repo rate has been cut by 100 basis points, from 6.5% in February to 5.5% in June 2025. Following a prolonged stretch of rate hikes, this is the third consecutive rate cut, a clear signal of a shift in RBI’s policy stance. If your home loan rate hasn’t moved much in the past four months, now is the right time to review your options and act. Here are three key strategies to help you manage and reduce your home loan rate:Consider a balance transfer to a lower-rate lenderThe latest MPR signals a shift from an ‘accommodative’ to a ‘neutral’ stance, meaning rate changes will now depend on economic data. With inflation in check and liquidity rising, several lenders have already offering home loans at 7.75%.So, if your existing lender is charging 8.30% on a 20-year ₹50 lakh loan, your approximate EMI is ₹42,760. But, if you transfer your loan to a new lender offering 7.30%, you can save as much as ₹3,089 per month and approximately ₹7.41 lakh in interest for the remainder of your loan term.It’s worth noting that transferring your loan may be most beneficial when done early in your loan tenure. Before making the switch, review the processing fees, legal charges, and foreclosure terms to ensure that the potential savings outweigh these costs.Improve your credit scoreFollowing the MPR, competition among lenders is likely to increase. Many are now offering rates for better scores, with lower rates being offered to borrowers with scores above 750.For instance, if the base rate is 8.5%, a high-score borrower might get 8.25%, while someone with a poor score could be offered 9%. On a ₹50 lakh loan, that may cost you an additional ₹1595 on your EMI.To boost your score, aim to pay your EMIs and credit card bills on time, avoid fresh credit applications unless essential, and keep your credit utilisation below 30%.Story continues below this adNegotiate with your lenderMost banks may prefer retaining a good customer than lose them to a competitor. If you have been prompt with repayments, use that as leverage to renegotiate your loan terms with your lender. A lower spread is among the quickest ways to reduce your monthly payments and increase your savings.For example, once your bank passes on the rate cut, a ₹50 lakh loan for 20 years with a 2.5% spread would have an approximate EMI of ₹41,822. However, if the spread on the same rate is lowered to 1.9%, the EMI drops to around ₹39,974 — saving you about ₹1,847 per month and approximately ₹4.43 lakh in total interest over the loan tenure.Rate fluctuations depend on evolving economic conditions. While rates may fall further if conditions remain supportive, they could also rise. Act now to make the most of the current rate cut by taking steps to reduce your interest outgo, and, in turn, your overall debt burden. You could use the savings to prepay a portion of your loan or strengthen your financial cushion. A smarter loan strategy today can save you lakhs in the long run.© IE Online Media Services Pvt LtdTags:EMI