RBI raises repo to 5.5% increasing floating-rate home loan EMIs
The Reserve Bank of India has bumped up the repo rate by 0.25% point to 5.5%, marking the first increase since late 2025.
If you have a floating-rate home loan, especially one linked to an external benchmark, expect your equated monthly installments, or EMIs, to go up soon.
This comes after last year's big rate cut that had made borrowing cheaper for a while.
EMIs up ₹852-₹867 for 50L home-loan
If you are repaying a ₹50 lakh home loan over 30 years, your monthly EMI could rise by about ₹852 at a PSU bank and ₹867 at a private bank, adding approximately ₹3.07 lakh for a PSU bank and ₹3.12 lakh for a private bank across the loan period.
The exact timing depends on when your lender resets rates.
Experts suggest now is a good time to review your loan details and look into better repayment or repricing options so you can keep costs in check.