Rate Hike: How Your EMI & FD Change Now

When RBI raises its key repo rate, banks charge more on home, car and personal loans — your EMI goes up. But FD savers earn more interest. Here is what changes for your money right now.

Here's what happened: RBI raising its repo rate directly pushes up borrowing costs — home, car and personal loan EMIs on floating-rate products rise automatically.. Fixed deposit savers stand to gain as banks offer higher interest rates on new FDs to attract deposits in a rising-rate environment.. Debt mutual funds, especially long-duration ones, see their NAV fall when interest rates rise, affecting conservative investors who rely on them..

What you should do: Check your loan agreement today to find whether your rate is EBLR-linked or MCLR-linked — EBLR loans reset faster, so your EMI rises sooner.. Compare FD rates across banks and post offices right now — rate-hike cycles are the best time to lock in higher rates on 1–3 year deposits.. Review any debt mutual fund holdings in your portfolio — shift from long-duration to short-duration or liquid funds to reduce NAV loss risk..

On an EBLR-linked home loan, ask your bank to extend your tenure instead of raising EMI — this keeps your monthly cash flow stable while rates are high.