The RBI raised its repo rate to 5.50% in October. If your home loan has a floating rate linked to the repo rate, your bank will pass on the increase, usually at the next reset, which comes every three months for most loans.
What it costs
Take a ₹50 lakh loan over 20 years. At 8.50%, the EMI is about ₹43,391. At 8.75%, it rises to about ₹44,186, or roughly ₹794 more a month.
Your own rate depends on your bank and credit score. To work out your increase, add 0.25 percentage points to your current rate and use any EMI calculator.
EMI or tenure
Many banks keep the EMI the same and stretch the loan’s length instead. That costs more in total interest. If you can afford it, ask your bank to raise the EMI and keep the tenure unchanged.
If rates rise again
The RBI meets again from December 2 to 4. Its October minutes said cuts are off the table for now, so another hike or a pause are both possible.
