6 Banks Hike Rates: Your EMI Rises This Month?

After RBI raised the repo rate to 5.50%, six major banks including PNB and Indian Bank have hiked lending rates. If you have a floating-rate home, car, or personal loan, your EMI is likely going up this month.

Here's what happened: RBI raised the repo rate to 5.50%, and six banks — PNB, Indian Bank, Bank of Baroda, Bank of India, Indian Overseas Bank, and Tamilnad Mercantile Bank — have passed on the hike by raising their lending rates.. Floating-rate loan borrowers at these banks will see their effective interest rate rise, which translates directly into higher monthly EMIs or a longer repayment tenure.. Fixed-rate loan borrowers are shielded for now, but borrowers on hybrid or reset-clause loans should check their loan agreement for when the next rate review kicks in..

What you should do: Log into your bank's net banking or app right now and check the current interest rate listed on your home, car, or personal loan account — compare it to what you signed at disbursement.. Use a free EMI calculator (available on GoCredit) to recalculate your revised monthly payment at the new rate and adjust your monthly budget before the next due date.. Call your bank's customer care or visit the branch to ask about prepayment options — even one lump-sum prepayment of ₹50,000–₹1 lakh can significantly reduce the total interest burden over the loan tenure..

If your loan is linked to an external benchmark like the RBI repo rate, banks are mandated to reset your rate within 3 months — demand a revised amortisation schedule in writing; many banks quietly extend tenure instead of raising EMI, costing you far more in total interest.