Banks Hike Rates Post-RBI? Check Your EMI Now

After RBI cut the repo rate by 0.50% this year, some banks raised loan rates while others cut them. Your EMI change depends entirely on which bank you're with and what loan type you have.

Here's what happened: RBI cut the repo rate by a cumulative 0.50% in 2025, but individual banks have responded differently — some cutting, some holding, some hiking their own benchmark rates.. Loans linked to EBLR (External Benchmark Linked Rate) are legally required to reflect repo-rate changes within 3 months, while MCLR-linked loans have no such mandatory pass-through.. Borrowers with older home, car, or personal loans — especially pre-2019 loans — are most at risk of being on MCLR and missing out on rate-cut benefits entirely..

What you should do: Check your loan agreement or latest bank statement to find out whether your loan is EBLR-linked or MCLR-linked — this one detail determines if you're legally owed a rate cut.. Compare your current interest rate against your bank's publicly published EBLR or MCLR on their website; if it hasn't moved in 3 months post-RBI cut and you're on EBLR, file a complaint at RBI Ombudsman (cms.rbi.org.in).. Ask your bank about switching your MCLR loan to an EBLR-linked loan — there may be a small conversion fee (typically ₹2,000–₹5,000) but the long-term EMI savings can far outweigh it..

Pro tip: On EBLR loans, your rate resets on a fixed date (often quarterly). If RBI cut rates last month but your reset date is 2 months away, your EMI drop is coming — just not yet.