India TV

Home loan EMIs to go up as RBI increases repo rate by 25 bps, here's how much more you will have to pay

The Reserve Bank of India has raised the key benchmark policy rate by 25 basis points to 5.5 per cent. This is the first repo rate hike in over three years and comes as an effort to tame rising inflation amid the ongoing West Asia crisis. With the rate hike, home loans, vehicle loans and corporate loans will become more expensive, and EMIs for existing borrowers will also go up. The last repo rate hike was in February 2023, when the RBI raised the rate by 0.25 per cent to 6.50 per cent. It kept the rate unchanged through 2023-24 before beginning its rate-cut cycle in 2025.