How RBI repo rate hike will affect your EMIs and loan tenure - Explained
According to the RBI norms, banks are required to link the interest rates of loans with an external benchmark, which is generally the RBI's repo rate. Meanwhile, the bank deposit rates are also likely to increase, bringing some relief to the common man. After the rate hike by the central bank, the timing of taking the loan is crucial for home loan borrowers as they usually borrow at floating rates.
The monetary policy committee (MPC) of the Reserve Bank of India (RBI) has unanimously voted to increase the policy repo rate by 50 basis points to 5.40 percent. Pic: Reuters