Will my home loan EMI go up after the RBI repo rate hike?
Last checked 21 Oct 2026 · by BachatLab
Only if your loan is linked to the repo rate. The RBI repo rate is now 5.50%, last changed on 7 Oct 2026, so a repo-linked loan gets a new rate at its next reset, and your lender then changes your EMI, your loan years, or both.
Which loans move when the repo rate moves
Most home loans from banks are linked to the repo rate: your rate is the repo rate plus a fixed margin your bank set when it sanctioned your loan. When the repo rate goes up by 0.25 points, a repo-linked loan's rate goes up by 0.25 points at its next reset date. Some lenders, mostly housing finance companies, set their own rate, so an RBI change does not move it by itself.
Of the 14 lenders we track, 10 follow the repo rate on their main home loans, 1 on some loans, and 3 set their own rate. Repo-linked home loan rates moved up at most banks between 8 and 15 October 2026.
How to tell which kind you have
- Look in your sanction letter or in the last rate-change message from your lender for the name of the benchmark.
- Words like "repo", "RLLR" or "EBLR" usually mean the rate follows the RBI repo rate. The benchmark named in your letter tells you which one.
- Words like "MCLR", "base rate" or a lender's own name for its rate mean it does not follow the repo rate directly.
- If you cannot tell, ask your lender in writing: "Is my home loan linked to the RBI repo rate, and when is my next reset date?"
What a 0.25-point rise does to your EMI
- EMI at 9.00%
- ₹44,986
- EMI at 9.25% with the same 20 years
- ₹45,793
- Extra every month
- ₹807
- Or keep the EMI at ₹44,986: years left become
- 21 years 1 month (instead of 20 years)
An example to show how it works, not a quote. Your own numbers will differ.
What your lender must do
When your loan is sanctioned, your lender must explain how a change in its benchmark rate can change your EMI or your loan years, and must tell you when it does. At each reset (the day your rate is next changed) you must be offered a choice: a higher EMI, more loan years, or both, and the option to pay part of the loan off. Any charge for switching must be disclosed upfront. A longer loan must not leave your EMI below the monthly interest. You must get a quarterly statement showing what you have paid, your EMI, the EMIs left and your yearly rate.
What to do this week
- Find your loan's benchmark in your sanction letter or your latest rate-change message.
- Open your latest loan statement and note your EMI, your annual rate and your end date.
- If your lender offered you a choice, choose on purpose. A higher EMI costs more each month; more loan years cost more interest in total.
- Compare your rate with what lenders publish today for new loans. If yours is higher, ask in writing for the lower rate.
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Check my home loanGeneral information, not advice. Your lender decides your rate, fees and terms. Rates and rules were checked on the date above.