Repo Hike Hits Home: Your EMI Up ₹1,800?

After RBI raised the repo rate to 5.50%, banks like Bank of Baroda and Bank of India have hiked lending rates by 0.25%. If you have a floating-rate home or personal loan, your EMI is about to go up — and here's what you can do about it.

Here's what happened: RBI raised the repo rate to 5.50%, prompting banks including Bank of Baroda and Bank of India to increase lending rates by 25 basis points.. Floating-rate loan borrowers on EBLR-linked products face automatic EMI increases or tenure extensions — often with no prior notice from the bank.. Multiple rate hikes over recent months mean cumulative EMI increases could be ₹1,500–₹2,000/month on mid-size home loans of ₹30–50 lakh..

What you should do: Log into your bank's loan portal or net banking right now and check your current applicable interest rate — compare it to what your sanction letter stated.. Call your bank's loan helpline and ask whether your EMI has been revised or your tenure extended — insist on a written revised repayment schedule.. Consider making a partial prepayment of ₹1–2 lakh if you have idle savings — this directly reduces your principal and can offset months of rate-driven EMI increases..

Banks are required to reset EBLR-linked rates within 3 months of a repo change. If your bank hasn't notified you of a reset beyond that window, file a written complaint — that delay is a regulatory violation.