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RBI Repo Rate Hike Impact on Home Loan EMI
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News18•07-10-2026, 11:59
RBI Repo Rate Hike Impact on Home Loan EMI
- •The Reserve Bank of India has increased the repo rate by 25 basis points, raising it from 5.25 percent to 5.50 percent.
- •This policy rate hike will increase monthly installments for home loans, car loans, and personal loans for common borrowers.
- •For a 20 lakh home loan at a 20-year tenure, the monthly EMI will increase by 307 rupees to reach 16,419 rupees.
- •For a 30 lakh loan, borrowers will have to pay an extra 460 rupees per month, bringing the EMI to 24,628 rupees.
- •For a 50 lakh loan, the monthly installment will increase by 767 rupees to 41,047 rupees due to the rate hike.
Key Questions Answered
The Reserve Bank of India increased the repo rate by 25 basis points, raising it from 5.25% to 5.50% following a three-day MPC meeting.
For a 50-lakh home loan taken at a 7.5% interest rate for 20 years, the monthly EMI will increase from 40,280 rupees to 41,047 rupees, requiring borrowers to pay an additional 767 rupees every month.
The RBI implemented a repo rate hike after nearly four years, with the previous increase having occurred in February 2023.
