RBI Repo Hike? Your EMI May Rise by ₹500+

RBI's rate-setting committee meets Oct 5-7. Economists expect a 0.25% repo rate hike to 5.5%, which would push up EMIs on home, car, and personal loans for millions of borrowers.

Here's what happened: RBI's Monetary Policy Committee (MPC) is meeting October 5–7 to review the benchmark repo rate, currently at 5.25%.. Most economists forecast a 25-basis-point hike to 5.5%, driven by persistent inflation and global central banks tightening monetary policy.. A repo rate hike raises the cost at which banks borrow from RBI, and banks typically pass this cost on to retail borrowers through higher lending rates..

What you should do: Check your loan agreement today: confirm whether your home, car, or personal loan is on a floating or fixed interest rate — only floating-rate loans are affected by a repo hike.. Use your bank's online EMI calculator to see your revised monthly payment at 5.5% and plan your budget before the revised statement arrives.. Compare your current lender's rate with other banks — a repo hike is a legal trigger to request a loan balance transfer if a competitor offers a meaningfully lower spread..

Most floating-rate home loans are linked to an external benchmark (repo or T-bill). Your bank must revise your rate within 3 months of an RBI change — but you can call and ask for the revised schedule immediately after the MPC announcement.