RBI May Hike Rates 100 bps: Your EMI by 2027?

BofA Securities predicts RBI may raise the repo rate by a total of 100 basis points through the first half of 2027, starting as early as October. If true, home loan and personal loan EMIs will rise meaningfully for millions of Indian borrowers.

Here's what happened: BofA Securities has forecast that RBI could raise the repo rate by a cumulative 100 basis points across multiple policy meetings running through the first half of 2027.. The investment bank expects the rate-hike cycle to begin as early as the October 2025 monetary policy committee meeting, with a 25 bps move to start.. If the full 100 bps materialises, the repo rate — currently at 6% after recent cuts — would climb back toward 7%, reversing the easing cycle of early 2025..

What you should do: Check your home loan agreement: if it is on a floating EBLR-linked rate, calculate your new EMI using a loan calculator assuming a 1% higher interest rate — budget for that difference now.. Compare fixed-rate options from your bank or other lenders before October; locking in today's lower rate on a balance-transfer or top-up loan could protect your EMI for 2–5 years.. Avoid taking on new long-tenure floating-rate debt (personal loans, top-ups) in the next 3–6 months unless essential — wait to see whether October's MPC meeting confirms the hike direction..

When RBI hikes rates, banks extend loan tenure first — your EMI may look unchanged but you pay interest for extra months. Explicitly ask your bank to keep tenure fixed and raise EMI instead to avoid overpaying.