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The current Reserve Bank of India (RBI) repo rate is 5.50%, effective 7 October 2026, following a 25 basis point increase from 5.25% announced at the Monetary Policy Committee (MPC) meeting held from 5-7 October 2026. The SDF rate is 5.25%, while the MSF rate and Bank Rate are 5.75%. The next MPC decision is scheduled for 4 December 2026, following the MPC meeting from 2-4 December 2026.
The following policy rates are effective from 7 October 2026, based on the latest RBI monetary policy statement:
| Rate | Current Value |
|---|---|
Policy Repo Rate |
5.50% |
Standing Deposit Facility (SDF) Rate |
5.25% |
Marginal Standing Facility (MSF) Rate |
5.75% |
Bank Rate |
5.75% |
Fixed Reverse Repo Rate |
3.35% |
Cash Reserve Ratio (CRR) |
3.00% |
Statutory Liquidity Ratio (SLR) |
18.00% |
Disclaimer: The current RBI policy rates shown above are based on the latest RBI announcement as of 7 October 2026 and may change in future monetary policy reviews. Please refer to the official RBI website for the latest updates.
At its meeting held from 5-7 October 2026, the Monetary Policy Committee (MPC) of the Reserve Bank of India increased the repo rate by 25 basis points and changed its policy stance to calibrated tightening. The decision was taken after reviewing evolving macroeconomic conditions, inflation trends, and growth prospects.
The MPC unanimously increased the policy repo rate by 25 basis points, from 5.25% to 5.50%
The MPC changed its policy stance from ‘neutral’ to'calibrated tightening'
The RBI highlighted concerns around higher crude oil prices, the impact of a below-normal monsoon, and a firmer inflation outlook
For FY 2026-27, the RBI projected CPI inflation at 5.2%, with inflation expected to peak at around 6.0% in Q3
The RBI projected real GDP growth at 7.1% for FY 2026-27
This was the first repo rate increase since February 2023
Disclaimer: The information above is based on the RBI Monetary Policy Committee's October 2026 policy resolution and is intended for informational purposes only. Future policy decisions may differ based on evolving economic conditions.
If you are wondering what a repo rate is, the term ‘repo’ stands for ‘repurchase agreement’. In India, RBI offers funds in exchange for securities to commercial banks that require urgent cash. The repo rate is the interest charged at the time of repurchase of the sold securities. This helps RBI regulate and curb inflation.
This rate fluctuates as per the policies of RBI and prevalent market conditions. The central bank’s Monetary Policy Committee (MPC) meets six times each financial year to reflect on the need to increase or decrease the repo and other important rates. If no cuts or boosts are required, RBI’s MPC tends to keep these unchanged.
Cuts in repo rates allow commercial banks to get loans from RBI at lower interest rates, while a hike results in the exact opposite. The effects of changes in the repo rate trickle down to your personal finances as well. If it is lowered, your home loan might be impacted by a reduction in the interest you are liable to pay and vice versa.
A RBI repo rate hike can increase the cost of borrowing for banks and housing finance companies. When lenders revise the benchmark rates linked to floating-rate home loans, borrowers may see an increase in their interest rate, EMI, loan tenure, or both.
If you have a floating-rate home loan linked to an external benchmark such as the repo rate, the impact is usually reflected on the next reset date. For fixed-rate home loans, the EMI generally remains unchanged during the fixed-rate period.
The speed of transmission depends on the benchmark used by your lender:
| Loan Type | Impact of Repo Rate Hike |
|---|---|
Repo-linked (EBLR/RLLR) Home Loans |
Usually reflected at the next reset date |
MCLR-linked Home Loans |
Impact may be delayed based on the reset cycle |
Fixed-Rate Home Loans |
No immediate impact during the fixed-rate period |
Note: Following RBI guidelines, lenders are required to communicate changes in loan terms arising from interest rate resets. Borrowers may be offered options such as an EMI increase, tenure extension, or, where available, a switch to a fixed interest rate. The exact options depend on the lender's policies.
Let’s understand this with an illustration:
| Scenario | EMI on ₹50 Lakhs for 20 Years |
|---|---|
8.00% p.a. |
₹41,822 |
8.25% p.a. |
₹42,603 |
Increase |
₹781 per month |
As you can see, a 25-bps increase from 8.00% to 8.25% raises the EMI by approximately ₹781 per month on a ₹50 Lakh home loan with a 20-year tenure. Actual loan terms may vary by lender.
Disclaimer: The impact of a repo rate change varies based on the loan benchmark, reset frequency, lender policies, and outstanding tenure. The example above is for illustrative purposes only.
The increase in your EMI depends on the loan amount, remaining tenure, and whether your lender chooses to increase the EMI, extend the tenure, or use a combination of both. Even a small increase in interest rates can significantly increase the total interest paid over the life of a home loan.
Consider the example below:
Loan Amount: ₹50 Lakhs
Remaining Tenure: 20 Years
Interest Rate Increase: 8.00% to 8.25%
| Particulars | Before Rate Hike | After Rate Hike |
|---|---|---|
Interest Rate |
8.00% p.a. |
8.25% p.a. |
Monthly EMI |
₹41,822 |
₹42,603 |
Monthly Difference |
- |
₹781 |
If the lender keeps the EMI unchanged instead of increasing it, the repayment tenure may be extended to compensate for the higher interest rate. This can increase the total interest payable over the loan tenure.
Before choosing between a higher EMI and a longer tenure, compare the long-term cost implications and assess which option best suits your repayment capacity.
Disclaimer: These calculations are illustrative and assume a ₹50 Lakh home loan with a 20-year tenure. Actual EMI revisions depend on the lender's benchmark rate, reset policy, and loan terms.
A repo rate hike does not necessarily mean you have to accept a significantly higher repayment burden. Depending on your financial situation, there are several ways to manage the impact of rising interest rates.
Make part-prepayments
Reducing the outstanding principal can lower future interest costs and ease the impact of higher rates.
Increase your EMI voluntarily
If your budget allows, a slightly higher EMI can help prevent a significant tenure extension.
Consider a balance transfer
Moving the loan to a lender offering a lower interest rate may reduce your borrowing cost.
Opt for a longer tenure
Extending the tenure can reduce the EMI, although it may increase the total interest payable.
Review lender conversion options
Some lenders allow borrowers to switch to a different rate structure by paying a conversion fee.
Reduce other debts
Lowering existing loan obligations can help improve overall cash flow and repayment capacity.
A repo rate hike does not require immediate action, but it is a good time to review your home loan. If your loan is linked to a floating rate, changes in the benchmark rate can increase your EMI, extend your tenure, or both. Reviewing your loan early can help you manage the impact more effectively.
Here are some practical steps to consider:
Check your loan benchmark
Find out whether your loan is linked to the repo rate, EBLR/RLLR, or a fixed rate.
Review your next reset date
Repo-linked loans typically reflect rate changes at the next scheduled reset.
Understand the lender's communication
Lenders are required to inform borrowers about the impact of interest rate resets and the available repayment options.
Compare EMI and tenure impact
Check whether the lender has increased your EMI, extended your loan tenure, or applied a combination of both.
Consider making a part-prepayment
Reducing the outstanding principal can help offset the effect of higher interest rates.
Evaluate refinancing options
If another lender offers a substantially lower rate, a balance transfer may be worth exploring.
Reassess your monthly budget
Ensure the revised EMI remains comfortable within your repayment capacity.
The repo rate is decided by the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI). The MPC comprises six members and is responsible for setting monetary policy with the objective of maintaining price stability while supporting economic growth.
The committee typically meets six times each financial year to review economic conditions, inflation trends, liquidity, growth forecasts, and global developments. After assessing these factors, it decides whether to increase, decrease, or maintain the repo rate.
Let's look at how the decision-making process works:
The MPC reviews inflation, growth, liquidity, and financial market conditions
Members discuss the economic outlook and policy requirements
Each member casts a vote on the repo rate decision
The resolution and voting pattern are published after the meeting
Any repo rate change takes effect from the date announced by the RBI
Disclaimer: Monetary policy decisions are based on prevailing economic conditions and may change at future MPC meetings. Please refer to the official RBI website for the latest policy updates.
The repo rate has moved through four distinct phases over the past few years: a rate-hike cycle that peaked in 2023, a prolonged pause during 2023-24, a rate-cut cycle in 2025, and a fresh 25-basis-point hike in October 2026. These changes have influenced borrowing costs, fixed deposit rates, and floating-rate home loan EMIs across the country.
The table below highlights the major repo rate milestones between 2023 and 2026:
| Effective Date | Repo Rate | Change |
|---|---|---|
8 Feb 2023 |
6.50% |
+25 bps |
Apr 2023 to Dec 2024 |
6.50% |
No change |
7 Feb 2025 |
6.25% |
-25 bps |
9 Apr 2025 |
6.00% |
-25 bps |
6 Jun 2025 |
5.50% |
-50 bps |
Dec 2025 |
5.25% |
-25 bps |
Feb 2026 |
5.25% |
No change |
Apr 2026 |
5.25% |
No change |
Jun 2026 |
5.25% |
No change |
Aug 2026 |
5.25% |
No change |
7 Oct 2026 |
5.50% |
+25 bps |
Disclaimer: Repo rate history is based on RBI monetary policy announcements and is provided for informational purposes only. Future policy decisions may change based on inflation, growth, liquidity, and global economic conditions.
Several benchmark rates influence borrowing costs in India, but they serve different purposes. The repo rate and SDF rate are set by the RBI, while MCLR and EBLR are benchmarks banks use to price loans. Understanding the difference between repo rate and reverse repo rate can help you better assess the impact of policy changes on your loans.
| Particulars | Repo Rate | Fixed Reverse Repo Rate | SDF | MCLR | EBLR / RLLR |
|---|---|---|---|---|---|
Meaning |
Rate at which the RBI lends to banks against eligible securities |
Rate at which the RBI absorbs liquidity from banks |
Rate at which banks can park surplus funds with the RBI without collateral |
Internal benchmark used by banks to price certain loans |
External benchmark lending rate linked directly to the repo rate |
Current Rate |
|
|
|
Varies by bank |
Varies by lender and repo-rate spread |
Who Uses |
RBI and banks |
RBI and banks |
RBI and banks |
Banks |
Banks and borrowers with repo-linked loans |
Purpose |
Monetary policy and inflation management |
Liquidity absorption |
Forms the floor of the Liquidity Adjustment Facility (LAF) corridor |
Helps banks determine lending rates |
Enables faster transmission of repo-rate changes to borrowers |
The current RBI repo rate is 5.50%, effective 7 October 2026, following a 25-basis-point hike by the Monetary Policy Committee.
Borrowers with repo-linked floating-rate home loans may see changes in their EMI or loan tenure when rates are reset, while fixed-rate borrowers are generally unaffected during the fixed-rate period.
If you have a floating-rate loan, consider checking your next reset date and recalculating your EMI to understand the potential impact of the latest rate hike.
The next Monetary Policy Committee decision is scheduled for 4 December 2026, following the MPC meeting from 2-4 December 2026.
|
RLLR (Repo Linked Lending Rate) is a lending benchmark linked directly to the RBI repo rate. It is typically calculated as the repo rate plus the bank's spread. When the repo rate changes, the interest rate on repo-linked floating-rate loans is revised at the next reset date, subject to the lender's reset policy. Since October 2019, banks have been required to link new floating-rate retail loans to an external benchmark such as the repo rate.
The Cash Reserve Ratio (CRR) is the percentage of deposits that banks must maintain with the RBI in cash, while the Statutory Liquidity Ratio (SLR) is the percentage of a bank’s net demand and time liabilities (NDTL) that banks must maintain in specified liquid assets. As of the RBI's October 2026 policy, the CRR is 3.00%, and the SLR is 18.00%.
When the repo rate increases, borrowing costs for banks generally rise. For borrowers with repo-linked floating-rate loans, this may result in higher loan interest rates at the next reset date, leading to an increase in EMIs, loan tenure, or both. Deposit rates may also increase over time. The RBI typically uses repo rate hikes to help manage inflation and maintain price stability.
The current RBI repo rate is 5.50%, effective 7 October 2026. The rate was increased by 25 basis points from 5.25% at the MPC meeting held from 5-7 October 2026.
The next Monetary Policy Committee (MPC) meeting is scheduled from 2-4 December 2026, with the policy decision scheduled to be announced on 4 December 2026.
Generally, no. An RBI repo rate hike does not affect the EMI or interest rate of a home loan during its fixed-rate period. The repo rate hike impact on home loan EMI is typically seen in floating-rate loans, where interest rates are linked to an external benchmark. However, some fixed-rate home loans may switch to a floating-rate structure after a specified period. Borrowers should review their loan agreement to understand the applicable reset and conversion terms.
Yes. Home loan interest rates may change even when the RBI keeps the repo rate unchanged. Lenders can revise rates due to changes in their cost of funds, liquidity conditions, credit risk assessment, regulatory requirements, or internal lending policies. However, repo-linked loans are directly influenced by changes in the underlying benchmark rate.
You can check the latest repo rate announcements, MPC resolutions, and policy statements on the official Reserve Bank of India (RBI) website (rbi.org.in). The RBI publishes the MPC decision, policy rates, voting pattern, and economic outlook after every policy review meeting.
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