01 Mar 2026 | 5 Mins Read
Low interest rates don't always lead to lower EMIs
Flipitmoney
Loans don't automatically reset after rate cuts; the change occurs at preset intervals. Bank tenure extensions can quietly increase loan duration by years. Not all rate-linked loans pass on cuts equally, and interest compounding in early years amplifies the impact of rising rates. Top-ups, moratoriums, and restructurings can also alter loan behaviour.