RBI Holds Repo Rate at 6% — EMIs Stay Affordable for Borrowers

The Reserve Bank of India's Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6% in its latest bi-monthly review. RBI Governor Sanjay Malhotra cited stable inflation within the 4% target band and steady GDP growth of 6.7% as key factors.

For personal loan borrowers, this is positive news. Banks and NBFCs are unlikely to increase lending rates in the near term, keeping EMIs predictable. Floating rate personal loans linked to external benchmarks will see no change in monthly payments.

Financial advisors suggest this is an ideal window to consolidate high-interest debt. Credit card outstanding at 36-42% APR can be replaced with personal loans at 10-14%, saving thousands in interest. With the rate cycle stable, locking in a personal loan now ensures affordable repayments.

For those planning large purchases or managing emergencies, the current rate environment offers the lowest borrowing costs in two years. Multiple lenders on platforms like GoCredit are offering pre-approved offers with instant disbursal.

Key takeaway: If you need funds, this rate-hold signals that borrowing costs won't go lower soon — making it a smart time to apply.