Short answer: To work out the repo rate hike EMI impact, start from the RBI's 7 Oct 2026 move: repo up 25 bps to 5.50%. A repo-linked home loan must reset at least every three months, so expect it within one quarter. On an illustrative ₹80 lakh, 20-year loan, 25 bps adds about ₹1,260 a month to a new EMI.
- Five moves since early 2025: cuts to 6.25%, 6.00%, 5.50% and 5.25%, then the October 2026 hike back to 5.50%.
- Each 25 bps is worth about ₹1,260 a month on a fresh ₹80 lakh, 20-year loan in this range.
- Repo-linked loans reset at least once every three months. Your bank's reset date decides when you feel it.
- You choose EMI or tenure. RBI rules require lenders to offer higher EMI, longer tenure, both, or prepayment.
- Our Check–Choose–Cushion plan turns a rate letter into a decision.
- What has the repo rate done since 2025?
- How fast does a repo change reach your EMI?
- Worked example 1: the round trip since June 2025
- Worked example 2: raise the EMI or extend the tenure?
- The Check–Choose–Cushion plan (our framework)
- Checklist when a rate letter arrives
- Frequently asked questions
- Talk it through with acre&key
- Sources
This tracker records every repo move since 2025 and what it means for a typical Bengaluru home loan. It's updated after each policy meeting.
What has the repo rate done since 2025?
| Date | Repo rate | Change | Illustrative loan rate (repo + 3.00%) | EMI, ₹80 lakh over 20 years |
|---|---|---|---|---|
| Before Feb 2025 | 6.50% | 9.50% | ₹74,570 | |
| 7 Feb 2025 | 6.25% | −25 bps | 9.25% | ₹73,269 |
| 9 Apr 2025 | 6.00% | −25 bps | 9.00% | ₹71,978 |
| 6 Jun 2025 | 5.50% | −50 bps | 8.50% | ₹69,426 |
| 5 Dec 2025 | 5.25% | −25 bps | 8.25% | ₹68,165 |
| Feb, Apr, Jun, Aug 2026 | 5.25% | Held | 8.25% | ₹68,165 |
| 7 Oct 2026 | 5.50% | +25 bps | 8.50% | ₹69,426 |
The October 2026 decision raised repo to 5.50%, moved the stance to "calibrated tightening" and said "rate cuts are off the table in the near term" (RBI, 7 Oct 2026). The December 2025 cut to 5.25% is in the RBI's 5 Dec 2025 resolution. Earlier 2025 dates are from the RBI's policy statements.
The "repo + 3.00%" loan rate is illustrative. It gives 8.5% at today's repo, the rate we use across our guides. Your bank's spread depends on your credit profile and the lender. The next MPC meeting is 2–4 Dec 2026.
How fast does a repo change reach your EMI?
RBI rules require floating-rate retail loans, including home loans, to be linked to an external benchmark such as the repo rate. The rate under that benchmark must reset at least once every three months (RBI Master Direction, Interest Rate on Advances). So a repo-linked loan picks up the October hike at your next reset, at most about a quarter later. Loans on older MCLR or base-rate benchmarks move on their own schedule.
When a reset raises your EMI or tenure, the lender must tell you. You must be offered a higher EMI, a longer tenure, a mix of both, or part or full prepayment. Switching to a fixed rate is up to the lender's board-approved policy (RBI FAQs on floating-rate reset).
Worked example 1: the round trip since June 2025
Illustrative, a fresh ₹80 lakh, 20-year loan at repo + 3.00%:
| Period | Loan rate | EMI | Versus June 2025 |
|---|---|---|---|
| Jun–Nov 2025 | 8.50% | ₹69,426 | |
| Dec 2025–Oct 2026 | 8.25% | ₹68,165 | −₹1,261 a month |
| After Oct 2026 reset | 8.50% | ₹69,426 | Back to where it was |
The December cut and the October hike cancel out. Borrowers who took the 2025 cuts as lower EMIs are now back at June 2025's figure.
Worked example 2: raise the EMI or extend the tenure?
Illustrative. You owe ₹75 lakh with 216 months left at 8.25%, and the reset takes you to 8.50%.
| Option | What changes | Cost over the loan |
|---|---|---|
| Raise the EMI | ₹66,761 → ₹67,909 (+₹1,148 a month) | About ₹2.48 lakh more in total |
| Keep the EMI, extend the tenure | 216 → about 225 months (+9 months) | About ₹6.03 lakh more in total |
Extending feels painless but costs about two and a half times as much here. If your budget can take ₹1,148 a month, raising the EMI is the cheaper choice. Check that tenure extension doesn't push you past your lender's age limit.
The Check–Choose–Cushion plan (our framework)
- Check. Which benchmark is your loan on (repo/EBLR, MCLR or older)? What's your reset date, and your spread over repo?
- Choose. Higher EMI or longer tenure? Compare total cost with our EMI calculator. Ask whether a fixed-rate switch is offered, and at what fee.
- Cushion. Keep EMIs within a comfortable share of take-home (see how much loan your salary supports), and test a further 25–50 bps.
Checklist when a rate letter arrives
- [ ] Benchmark named on the sanction letter (repo, T-bill, MCLR)
- [ ] Reset date and new rate, in writing
- [ ] Your spread over the benchmark, unchanged from the sanction letter
- [ ] New EMI and new tenure for both options
- [ ] Remaining tenure against your lender's age limit
- [ ] Prepayment option and any charges, in writing from your lender
- [ ] Whether a balance transfer to a lower spread is worth it
Buying soon? See the first-time buyer guide, our is it a good time to buy data guide and the home loan tax benefit answer.
This is general information, not financial advice. Your rate, spread and reset terms are in your loan documents; confirm them with your lender.
Frequently asked questions
On a fresh ₹80 lakh, 20-year loan, a 25 bps rise from 8.25% to 8.50% adds about ₹1,261 a month. On ₹75 lakh with 18 years left, it's about ₹1,148. Your figure depends on your outstanding balance, remaining tenure and whether the bank changes the EMI or the tenure.
At your loan's next reset. RBI rules require repo-linked retail loans to reset at least once every three months, so you'll see the 7 Oct 2026 hike by early 2027 at the latest. MCLR-linked loans move on the reset period set in your loan agreement.
Usually the EMI, if you can afford it. In our example, raising the EMI by ₹1,148 a month cost about ₹2.48 lakh over the loan. Keeping the EMI and adding about nine months cost about ₹6.03 lakh. Check the age limit if you extend.
RBI's reset rules require the lender to tell you about any change to your EMI or tenure. It must offer you a higher EMI, a longer tenure, both, or prepayment, and the tenure can't be extended to the point where the loan never amortises. Ask in writing if you weren't consulted.
5.50%, after the Monetary Policy Committee raised it by 25 bps on 7 Oct 2026. The standing deposit facility rate is 5.25%, and the marginal standing facility and Bank Rate are 5.75%. The stance changed to calibrated tightening. The next meeting is 2–4 Dec 2026.
The RBI said rate cuts are "off the table in the near term" and the next move "can only be a rate hike or a pause". It said that depends on growth and inflation. Nobody can tell you the December outcome, so test your EMI at a further 25–50 bps.
Repo-linked loans pass changes through faster, both cuts and hikes. Compare your current rate with the new rate after any conversion fee, and ask whether the spread is fixed for the loan's life. Our balance transfer answer covers when a switch pays.
The standard reducing-balance formula, with an illustrative loan rate of repo plus 3.00% on a fresh ₹80 lakh loan over 240 months. That gives 8.5% at today's repo. Your bank's spread may differ, so use your own rate in the EMI calculator.
Sources
Checked 19 Oct 2026.
- RBI, Monetary Policy Statement 2026-27, MPC 5–7 Oct 2026 (repo 5.50%): https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=63742
- RBI, Monetary Policy Statement, MPC resolution, 5 Dec 2025 (repo 5.25%): https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=61749
- RBI, Monetary policy statements (2025 decisions): https://www.rbi.org.in/SCRIPTs/Annualpolicy.aspx
- RBI, Master Direction, Interest Rate on Advances (external benchmark, reset at least once in three months): https://www.rbi.org.in/SCRIPTs/BS_ViewMasDirections.aspx?id=10295
- RBI, FAQs on reset of floating interest rate on EMI-based personal loans: https://www.rbi.org.in/commonman/Upload/English/FAQs/PDFs/FAQRFIR10012025.pdf
