BusinessRBI Raises Repo Rate by 25 Basis Points, Impact on EMIs Explained
The Reserve Bank of India (RBI) Monetary Policy Committee unanimously decided to increase the repo rate by 25 basis points from 5.25% to 5.5%, announced by RBI Governor Sanjay Malhotra. This hike will raise borrowing costs for banks, leading to higher home loan interest rates. For example, a 20-year ₹30 lakh home loan at 8.5% interest with an EMI of ₹26,035 will see the EMI rise to ₹26,511, increasing monthly payments by ₹476.
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