Have a ₹50 lakh home loan? Check how much your EMI could rise after the RBI rate hike

The RBI's 25-basis-point repo rate hike could increase the EMI on a ₹50 lakh home loan by ₹852– ₹867 a month over 30 years, or ₹759 over 20 years under a separate interest-rate assumption. Borrowers with larger loans could face higher monthly increases.

The Reserve Bank of India (RBI) has raised the repo rate by 25 basis points to 5.50%, marking its first rate hike since February 2023. The decision comes amid inflationary pressures and global uncertainties, with the central bank seeking to balance price stability and macroeconomic conditions.

For home loan borrowers, the hike could mean higher monthly repayments if banks pass on the increase to lending rates. The impact will depend on the loan amount, repayment tenure, lender and interest rate applicable to the borrower.

For someone with a ₹50 lakh home loan, the monthly EMI could rise by ₹852 to ₹867 on a 30-year loan, depending on the lender, according to Atul Monga, CEO and co-founder of BASIC Home Loan.

How much will your ₹50 lakh home loan EMI increase?

Monga estimates that a 25-basis-point increase would raise the monthly equated monthly instalment (EMI) on a ₹50 lakh home loan with a 30-year tenure by ₹852 at a public sector bank, from ₹34,109 to ₹34,961. At a private bank, the EMI would rise by ₹867, from ₹35,821 to ₹36,688.

Raoul Kapoor, co-CEO of Andromeda Sales and Distribution, said home loan rates of around 7.15% are currently available to eligible borrowers. If the entire 25-basis-point increase is passed on, the rate would rise to 7.40%, increasing the EMI on a ₹50 lakh loan for a 20-year period, from ₹39,216 to ₹39,975.