RBI Repo Rate Impact on Home Loan, Personal Loan EMIs: The Reserve Bank of India (RBI) on Wednesday, August 5, decided to maintain the repo rate unchanged at 5.25 per cent for the fourth time in a row.
This decision brings stability for borrowers and depositors.
The central bank reduced the repo rate by 125 basis points to 5.25% since February 2025. The previous rate cut took place in the December 2025 policy, following which the RBI MPC has kept the policy rate unchanged in the successive four monetary policy reviews.
After the latest RBI MPC’s status quo on policy rates, public and private sector banks are expected to maintain current rates on home, auto, and personal loans, unless they choose to adjust margins individually.
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.
RBI Repo Rate Status Quo: No Impact on Your Home Loan EMIs
No change in EMI as interest rates remain steady.
Example: Rs 50 lakh home loan for 30 years at 8.20% interest rate
- Current EMI: Rs 37,346
- New EMI: Rs 37,346
- Monthly Savings: Rs 0
- Annual Savings: Rs 0
Since the RBI kept the repo rate unchanged at 5.25%, your EMI stays the same.
RBI Repo Rate Status Quo: No Impact on Your Personal Loan EMIs
Example: Rs 5 lakh personal loan for 5 years at 12% interest rate
- Current EMI: Rs 11,122
- New EMI: Rs 11,122
- Monthly Savings: Rs 0
- Annual Savings: Rs 0
Home loan borrowers on repo-linked products saw benefit of the 125 basis points delivered since February 2025. On a Rs 50 lakh, 20-year loan, that translated into an EMI saving of around Rs 3,050 per month and a lifetime interest saving of Rs 7.34 lakh. On a Rs 75 lakh loan, the monthly saving was about Rs 5,800, with total interest savings of Rs 13.94 lakh. A rate hold keeps these gains intact. Borrowers still on base rate-linked products are not seeing this benefit automatically and should switch to a repo-linked loan if they want interest rate flexibility.
