Repo Rate Hike: Your ₹50L EMI Jumps ₹817?

A 0.25% repo rate hike by RBI could raise your home loan EMI by up to ₹817 on a ₹50 lakh loan. But FD investors may get slightly better returns. Here is what changes for your wallet.

Here's what happened: RBI is expected to hike the repo rate by 25 basis points (0.25%), directly raising the cost at which banks borrow and lend money.. Floating-rate home loan borrowers on EBLR or RLLR-linked loans will see EMIs rise automatically — up to ₹817 more per month on a ₹50 lakh, 20-year loan.. Fixed deposit investors may benefit as banks offer slightly higher rates on new FDs opened after the hike takes effect..

What you should do: Check your home loan agreement: if it says EBLR, RLLR, or repo-linked, your EMI will rise automatically — calculate the new amount using your bank's loan portal.. Compare FD rates across banks and post office schemes right now, and lock in fresh deposits at the higher rate before individual banks stop passing on the benefit.. If your EMI increase strains your monthly budget, call your bank and request a loan tenure extension instead — this keeps monthly outflow manageable without prepayment..

Banks must pass rate hikes to EBLR-linked borrowers within one reset cycle — usually quarterly. Ask your bank the exact reset date so you know precisely when your EMI changes, not just that it will.