2 RBI Rate Hikes Coming? Your EMI May Rise ₹1,500

RBI may hike the repo rate by 25 bps each in October and December due to rising crude oil prices and inflation. This could push up your home, car, and personal loan EMIs within weeks.

Here's what happened: RBI is widely expected to raise the repo rate by 25 basis points each in October and December 2024, totalling a 0.50% hike, driven by rising crude oil prices and sticky inflation.. A repo rate hike makes borrowing costlier for banks, who pass this on to customers — floating-rate home, car, and personal loan EMIs rise automatically without prior notice.. On the flip side, higher repo rates typically push banks to raise fixed deposit interest rates, benefiting savers who lock in money after the hike..

What you should do: Check your home or car loan agreement for the 'rate reset' clause — it tells you exactly when your EMI will change after a repo hike so you are not caught off guard.. If a higher EMI will stretch your budget, call your lender now and ask to extend your loan tenure instead — this keeps your monthly outflow stable without prepayment pressure.. If you are planning a new fixed deposit, consider waiting until after the October RBI policy meeting — FD rates often inch up within days of a repo hike..

Repo hikes hit MCLR-linked loans within 1–3 months, but EBLR-linked loans (most post-2019 home loans) reset faster — sometimes the very next month. Check which benchmark your loan follows.