Why many home loan borrowers may see rates go up
Many home loan borrowers with loans linked to the External Benchmark Linked Rate (EBLR) may see their interest rates increase following the Reserve Bank of India's (RBI) decision to raise the repo rate from 5.25% to 5.5%. This is the first rate hike since December 2025 and will result in higher Equated Monthly Installments (EMIs) for these borrowers. A ₹40 lakh home loan could see an EMI increase of approximately ₹654 per month, adding roughly ₹1.96 lakh in interest over the loan's tenure.
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