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RBI Repo Rate Hike: How Much Will Your EMI Increase? Impact on Home and Personal Loans
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News18•04-10-2026, 16:54
RBI Repo Rate Hike: How Much Will Your EMI Increase? Impact on Home and Personal Loans
- •RBI's next meeting may discuss a repo rate hike, potentially increasing your EMI burden.
- •Inflation, rising crude oil prices, and a weakening rupee are key factors driving a potential rate hike.
- •The RBI's Monetary Policy Committee (MPC) meeting is scheduled for October 5-7, with the decision on October 7.
- •The current repo rate is 5.25 percent, with a market expectation of a 25 basis point increase.
- •According to a Union Bank report, the repo rate could reach 5.75 to 6 percent in the coming days.
Key Questions Answered
The current repo rate stands at 5.25 percent. The Monetary Policy Committee meeting is scheduled from October 5 to 7, with the final decision to be announced on October 7.
The central bank may raise the repo rate due to several economic pressures, including rising retail inflation, high crude oil import costs, a weakened rupee against the dollar, excess banking liquidity, and growing credit demand.
If the RBI increases the repo rate, banks' borrowing costs will rise, which can lead to higher monthly EMIs or an extended loan repayment period, particularly for floating-rate loans.
