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Repo Rate Hike: How much will the EMI increase for 25-year home loan borrowers?
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News18•08-10-2026, 10:16
Repo Rate Hike: How much will the EMI increase for 25-year home loan borrowers?
- •The Reserve Bank of India hiked the repo rate by 25 basis points from 5.25 percent to 5.50 percent.
- •Banks including Punjab National Bank and Indian Bank have immediately raised their lending interest rates.
- •For a Rs 30 lakh home loan with a 25-year tenure, the monthly installment will increase by Rs 490.
- •For a Rs 50 lakh home loan, the additional interest amount paid over the entire tenure will increase by Rs 2,45,000.
- •This interest rate hike is expected to benefit depositors who hold fixed deposits while increasing the burden on borrowers.
Key Questions Answered
The Reserve Bank of India hiked the repo interest rate due to rising inflation, an increase in crude oil prices, and the abnormal situation prevailing in West Asia.
For a home loan of Rs 50 lakh with a 25-year tenure, the monthly installment will increase by Rs 817, raising the previous interest rate of 7.5 percent to 7.75 percent and the monthly EMI from Rs 36,950 to Rs 37,766.
Following the RBI's repo rate hike, banks including Punjab National Bank, Indian Bank, Bank of Baroda, and Tamilnad Mercantile Bank immediately raised their lending interest rates.
