RBI Repo Rate: Impact on Your Home Loan EMI
The RBI repo rate directly affects floating-rate home loan EMIs. When the repo rate changes, banks adjust their lending rates accordingly.
Current RBI Repo Rate
5.25%
As of Feb 2026 (-0.25%)
Recent Rate History
| MPC Date | Repo Rate | Change |
|---|---|---|
| Feb 2026 | 5.25% | -0.25% |
| Dec 2025 | 5.5% | No change |
| Oct 2025 | 5.5% | No change |
| Aug 2025 | 5.5% | -0.25% |
| Jun 2025 | 5.75% | -0.25% |
| Apr 2025 | 6% | -0.25% |
| Feb 2025 | 6.25% | -0.25% |
What does the rate change mean for your loan?
How Does the Repo Rate Affect Your Home Loan?
The repo rate is the rate at which the Reserve Bank of India lends money to commercial banks. When the RBI cuts the repo rate, banks can borrow money cheaper, and they typically pass on part of this benefit to borrowers by reducing their lending rates (MCLR or external benchmark rates like EBLR/RLLR).
If your home loan is on a floating rate (which most Indian home loans are), your EMI or tenure will be adjusted when your bank revises its benchmark rate. For external benchmark-linked loans (post Oct 2019), the transmission happens within 3 months. For older MCLR-linked loans, it may take 6-12 months.
What Should You Do When Rates Change?
- Rate cut: Your EMI may reduce automatically, or your tenure shortens. Use our EMI calculator to see the exact impact.
- Rate hike: Consider making a part payment to offset the increased interest burden. Even a small lump sum can save months of tenure.
- Balance transfer:If your current lender hasn't passed on rate cuts, consider transferring to a bank offering better rates. RBI mandates zero prepayment penalty on floating rate loans.
Track how rate changes affect your specific loans. Add your loans to the free dashboard →