The Home Loan rate of interest changes with the RBI repo rate. The rate of interest can increase or decrease over a period of time. When you take a Home Loan there are 2 possibilities of Interest Rate:
1) Fixed Rate
2) Interest Rate linked to the Benchmark Rate of the bank
When the interest rate is fixed for your Home Loan, it does not change with the change in Benchmark rate of the bank. Suppose you took a loan at 10%p.a. fixed and the RBI repo rate fell substantially after your loan was sanctioned and disbursed. In this scenario, you will not get a benefit of the rate change as your rate of interest in fixed at 10%. To take advantage of the fall in the rate it is better to go for a Home Loan Take over. Basically, you choose to transfer your loan to another bank to take advantage of the lower rate of interest.
In this case, if your rate of interest was 10% and if other banks are lending at 8.5%, depending on your disbursed amount, you can save good amount on your EMI. It is always better to keep a watch on the interest rates so that you don't miss an opportunity.