RBI raised the repo rate to 5.50%.
How banks changed their repo-linked lending rates after the 7 Oct 2026 decision, and what it means for your EMI.
The decision
On 7 Oct 2026, the RBI Monetary Policy Committee raised the policy repo rate by 0.25 percentage points, from 5.25% to 5.50%. Most bank floating-rate home loans are linked to this rate through each bank's repo-linked lending rate (EBLR or RLLR), so those rates rise at the next reset.
What banks published
We track the repo-linked rate of 16 banks that publish one. 15 of them show a rate effective on or after 7 Oct 2026. One still shows an older date on its website (IDBI Bank).
What 0.25% more does to an EMI
If your lender raises the EMI rather than the tenure, here is the change for a few common loans (standard EMI formula, full tenure remaining).
| Loan | EMI before | EMI after +0.25% | Change a month |
|---|---|---|---|
| ₹30 lakh, 20 years at 8.50% | ₹26,035 | ₹26,511 | +₹477 |
| ₹50 lakh, 20 years at 8.50% | ₹43,391 | ₹44,186 | +₹794 |
| ₹75 lakh, 25 years at 8.50% | ₹60,392 | ₹61,661 | +₹1,269 |
If your lender keeps the EMI and extends the tenure instead, you pay the same each month for longer. Use the rate change calculator for your own loan.
Checked 18 Oct 2026 on each lender's own website. Lenders change rates often and we may not have updated ours yet; the lender's page is the final word. "Actually charged" means rates lenders gave borrowers in a recent quarter, which they must publish. Your rate depends on your profile, CIBIL score and loan.
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Questions.
What did RBI decide on 7 October 2026?
RBI raised the policy repo rate by 0.25 percentage points, from 5.25% to 5.50%, and changed its stance to "calibrated tightening". Source: the RBI Monetary Policy Committee resolution linked on this page.
When will my EMI change?
Repo-linked loans change at their next reset date, which RBI rules require at least once every three months. Many lenders keep the EMI the same and extend the tenure instead. MCLR and base-rate loans change only at their own reset dates. Check the letter or email from your lender.
Should I switch lenders after the hike?
A hike raises rates across lenders, so the gap between lenders matters more than the hike itself. Compare your rate with what lenders publish, ask your own bank first, and use the balance transfer calculator to check costs. LowerMyEMI can write the requests for you, free.