Rate Hike Ahead: Will Your EMI Jump ₹1,850?

Economists now expect RBI to raise interest rates by 25 bps this week, with up to 75 bps more by March 2027. If this happens, home, car, and personal loan EMIs will rise. Here is what to do before rates go up.

Here's what happened: A majority of bank economists surveyed expect RBI's Monetary Policy Committee to raise the repo rate by 25 basis points at its upcoming meeting, signalling a shift from the recent pause.. Forecasters see a cumulative rate increase of 50 to 75 basis points by the end of FY2026-27, meaning borrowing costs could keep rising through most of next year.. The policy stance is expected to move from accommodative or neutral to tightening, which historically leads banks to increase lending rates on floating-rate loans within weeks..

What you should do: Check your loan agreement today to confirm whether your rate is floating (linked to repo or MCLR) or fixed — floating borrowers are directly exposed to every upcoming hike.. Compare lenders on GoCredit now and consider locking in a fixed-rate personal loan or a balance transfer before rates climb further and new offers get pricier.. Make a lump-sum prepayment of even ₹50,000–₹1 lakh on your home loan principal this month — reducing principal before a rate hike cuts your interest burden more than the same payment made after..

If your home loan is on MCLR, ask your bank for a repo-linked external benchmark rate (EBR) switch — it transmits rate changes faster, so you also benefit more quickly when rates eventually fall.