including home loans taken after april 1 2016 are linked to the banks marginal cost of funds based lending rate mclr the actual rate of home loan interest can be equal to the mclr or have a markup or spread but can never be lower than the mclr further most banks have the reset clause for mclr linked home loan after a year so if one takes a home loan in june 2017 and the rbi cuts repo rate in august 2017 even though banks mclr might come down in the same month the effect of it for the borrower will be seen in june 2018 only if the reset date is after 12months the link below will help you understand how mclr works and the things one needs to watch out for while taking mclr linked home loan heres how mclr linked home loan works switch to mclr from base rate and if you are still paying the interest rate on a home loan linked to banks base rate heres why switching to mclr linked loan helps still paying interest on home loan at old rates cut emi by switching to mclrlinked rate now factors at play amongst other factors inflation could have been the single most important reason for the rbi to maintain the status quo on the rates in its previous meeting in april 2017 the rbi monetary policy committee had already remarked that inflation is projected to average 45 percent in the first half of the year and 5 percent in the second half in reality consumer prices rose 381 percent in march from a year earlier having risen 365 percent in february indias central bank targets keeping inflation around 4 percent in the medium term also global crude oil prices fell by 5 per cent recently after oil producing countries voted not to deepen output cuts for a further nine months oil is indias largest import and softer crude prices for the next few months means the rbi has one less thing to worry about however the impending impact of gst was also the reason identified earlier by the rbi to have an inflationary impact further with fed rate hike looking imminent this month the outflow of dollars could put pressure on indian rupee thus weakening it against the us currency and also leading to inflationary conditions conclusion the next policy is scheduled in august 2017 and the implementation of gst and the monsoon will be on the rbis radar rbi therefore will be expected to continue the present stance of maintaining the repo rate for few more months unless some positive indicators come up those looking to buy a home for enduse may go ahead and take a home loan as for them its always the right time