RBI Repo Rate Unchanged At 5.5%: How Will It Impact Your Home, Personal Loan EMIs?

RBI keeps repo rate unchanged at 5.50 percent for the second time, bringing stability but no immediate change in EMIs or loan interest rates for bo...

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What is the story about?

RBI Repo Rate Impact: The Reserve Bank of India (RBI) on Wednesday, October 01, decided to maintain the repo rate unchanged at 5.50 per cent for the 2nd time after three consecutive cuts earlier this year. This decision brings stability but no immediate relief or increase for borrowers or depositors.

The repo rate — the interest rate at which the RBI lends to commercial banks — was reduced earlier from 6.5% to 5.5% across two cuts, and now remains steady as the central bank waits to assess inflation trends and economic recovery.

Between May 2020 and April 2022, the RBI kept the repo rate steady at 4 percent. From April 2022 to February 2023, the RBI gradually increased the policy rates to 6.5 percent, maintaining this rate for two years until

the recent reductions.

While the RBI’s status quo on the repo rate means no immediate changes in borrowing or deposit costs, the banks have the leisure to pass down earlier cuts benefits to customers.

Anuj Puri, Anarock said, RBI’s decision to keep the repo rate unchanged at 5.5% maintains home loan EMIs at current levels, which helps sustain buyer sentiment but does not improve housing affordability. This stability means existing home loan borrowers won’t see any immediate EMI changes, while new borrowers will find loan interest rates holding steady. As per latest ANAROCK data, Q3 2025 residential sales in India’s top 7 cities dropped 9% year-on-year to 97,080 units, yet overall sales value jumped 14% to INR 1.52 lakh crore, indicating demand shifted towards premium and mid-segment homes.

What This Means for Borrowers:

Since the repo rate remains unchanged:

Existing borrowers will not see any change in their EMIs.
New borrowers will find loan interest rates holding steady—for now.

Public and private sector banks are expected to maintain current rates on home, auto, and personal loans, unless they choose to adjust margins individually.