Have you ever noticed your home loan EMI suddenly increase, even without taking a new loan? That’s often due to something called an interest rate reset date—a key but often overlooked feature in floating rate home loans.
In this blog, Vizzve Finance breaks down what an interest rate reset date is, how it impacts your loan, and how you can plan smartly around it.
💡 What Is an Interest Rate Reset Date?
A reset date is when the lender revises the interest rate on your floating rate home loan based on changes in the benchmark rate (e.g., repo rate or external benchmark).
📌 In simple terms:
It’s the date when your lender recalculates your home loan interest rate, which may lead to a new EMI or a change in tenure.
🏦 Why Do Banks Use Reset Dates?
Lenders link floating home loans to a benchmark like:
Repo Rate
MCLR (Marginal Cost of Funds Based Lending Rate)
RLLR (Repo Linked Lending Rate)
Instead of changing rates daily, banks revise them periodically—usually every 6 months or 1 year—on the reset date.
📊 How It Affects You
Example:
| Parameter | Before Reset | After Reset |
|---|---|---|
| Interest Rate | 8.25% | 8.75% |
| EMI (on ₹30L for 20 yrs) | ₹25,480 | ₹26,498 |
| Change | +₹1,018 |
The reset doesn’t happen immediately after a repo rate change—it happens only on your scheduled reset date.
🧾 How to Find Your Reset Date
You can find your reset date in:
Your loan sanction letter
The loan agreement
Online loan dashboard from your lender
Or request it through Vizzve’s loan management service
✅ Fixed vs Floating: Reset Dates Matter Only for Floating Rates
| Type of Loan | Reset Date Impact | Notes |
|---|---|---|
| Floating Rate | ✅ Yes | Based on repo or MCLR |
| Fixed Rate | ❌ No | Stays the same for 3–10 yrs |
| Hybrid Rate | ✅ After fixed term | Switches to floating after X years |
💡 Tips to Handle Rate Resets
1. 🔍 Know Your Reset Frequency
Is it 6 months or 12 months? Vizzve recommends borrowers negotiate a longer reset cycle if repo volatility is high.
2. 📉 Plan for EMI Fluctuations
Prepare your budget for a possible rise or fall in EMI every reset cycle.
3. 🔄 Consider Switching if Unfavorable
If your bank is not passing on repo rate cuts or charging high spreads, consider a balance transfer with Vizzve to a better lender.
4. 🧑💼 Talk to a Vizzve Advisor
Our experts can help decode your loan terms and ensure your reset clause works in your favor—not against you.
🧮 How Vizzve Finance Helps
🕒 Tracks your reset dates and alerts you before changes
🧾 Compares new offers in case reset rate is unfavorable
🔁 Assists with loan refinancing or balance transfer
📈 Provides CIBIL improvement tips to lower interest offers
📌 Conclusion
Interest rate reset dates are more than just dates—they decide your monthly outflow. Knowing when and how they happen gives you power to plan, negotiate, or switch. With Vizzve Finance, you get full control over your home loan—from disbursal to reset and beyond.
Published on 3rd july
Publisher : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.