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Fitch Report: RBI May Hike Rates Twice, How Will Your ₹50 Lakh Home Loan EMI Change?
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CNBC Awaaz•23-09-2026, 11:51
Fitch Report: RBI May Hike Rates Twice, How Will Your ₹50 Lakh Home Loan EMI Change?
- •Fitch Ratings estimates RBI may raise interest rates by 25 basis points in October 2026 and again in early 2027.
- •A total 0.50% increase in interest rates could raise the EMI on a ₹50 lakh home loan over 20 years by approximately ₹1,595 per month.
- •The current policy repo rate is 5.25%, potentially rising to 5.75% after two hikes, impacting floating-rate home loans.
- •Instead of higher EMIs, banks might extend loan tenures, increasing total interest paid over the loan period.
- •Fitch upgraded India's GDP growth forecast for 2026-27 from 6.4% to 6.9%, but inflation concerns persist.
Key Questions Answered
Fitch Ratings expects the RBI to potentially raise interest rates due to mounting concerns over retail inflation, which is estimated to reach 5.5 percent by December 2026.
For a ₹50 lakh home loan with a 20-year remaining tenure at an 8.50 percent interest rate, a 0.50 percent total rate hike would increase the monthly EMI by approximately ₹1,595.
Fitch Ratings has revised its GDP growth forecast for India for the fiscal year 2026-27 upward from 6.4 percent to 6.9 percent.
