How does the repo rate affect my home loan?

Most floating-rate home loans are linked to the repo rate. When the RBI changes it, your loan's interest rate — and EMI or tenure — adjusts accordingly.

Who decides the repo rate?

The RBI's Monetary Policy Committee (MPC) sets the repo rate, usually reviewing it every two months.

Arth Vani — India's AI-Powered Financial News & Intelligence

Real-time coverage of Indian stock markets, IPOs, NFOs, mutual funds, insurance, banking, bonds and crypto — published in English, Hindi, Marathi and Kannada. Read, compare, decide and act.

Sections

Languages / भाषाएँ

Resources

Open a free Demat account & get ₹500 in stocks.Claim

अ

ArthVani

Financial Intelligence

Market closed

Nifty 5022,363.350.7%Sensex71,924.680.76%Bank Nifty54,9180.61%

Nifty 5022,363.350.7%H 22,651.1 · L 22,304.45as of 12 Oct, 3:31 PM IST|Sensex71,924.680.76%H 72,884.25 · L 71,676.1as of 12 Oct, 3:32 PM IST|Bank Nifty54,9180.61%H 55,416.45 · L 54,708.8as of 12 Oct, 3:31 PM IST|USD / INR₹95.761.05%H ₹96.78 · L ₹95.58as of 12 Oct, 11:40 PM IST|Gold Intl (10g)₹1,29,052.10.58%H ₹1,30,609.95 · L ₹1,28,633.39as of 13 Oct, 1:16 AM IST|Silver Intl (1kg)₹1,86,064.451%H ₹1,90,097.62 · L ₹1,85,941.3as of 13 Oct, 1:16 AM IST|Crude WTI₹8,941.111.65%H ₹9,035.91 · L ₹8,581.05as of 13 Oct, 1:16 AM IST|Bitcoin₹79,07,7812.32%H ₹79,99,385.21 · L ₹78,16,176.79as of 13 Oct, 1:21 AM IST|Ethereum₹2,40,5741.96%H ₹2,42,933.55 · L ₹2,38,214.45as of 13 Oct, 1:21 AM IST|Nifty 5022,363.350.7%H 22,651.1 · L 22,304.45as of 12 Oct, 3:31 PM IST|Sensex71,924.680.76%H 72,884.25 · L 71,676.1as of 12 Oct, 3:32 PM IST|Bank Nifty54,9180.61%H 55,416.45 · L 54,708.8as of 12 Oct, 3:31 PM IST|USD / INR₹95.761.05%H ₹96.78 · L ₹95.58as of 12 Oct, 11:40 PM IST|Gold Intl (10g)₹1,29,052.10.58%H ₹1,30,609.95 · L ₹1,28,633.39as of 13 Oct, 1:16 AM IST|Silver Intl (1kg)₹1,86,064.451%H ₹1,90,097.62 · L ₹1,85,941.3as of 13 Oct, 1:16 AM IST|Crude WTI₹8,941.111.65%H ₹9,035.91 · L ₹8,581.05as of 13 Oct, 1:16 AM IST|Bitcoin₹79,07,7812.32%H ₹79,99,385.21 · L ₹78,16,176.79as of 13 Oct, 1:21 AM IST|Ethereum₹2,40,5741.96%H ₹2,42,933.55 · L ₹2,38,214.45as of 13 Oct, 1:21 AM IST|

Breakingसंपत्ती कमवा: लहान, सातत्यपूर्ण गुंतवणूक तुमच्या पोर्टफोलिओला कशी चालना देऊ शकते1/6

Repo Rate

The rate at which the RBI lends to commercial banks.

Definition

The Repo Rate is the interest rate at which the Reserve Bank of India (RBI) lends short-term funds to commercial banks against government securities. It is the RBI's key policy tool to control inflation and liquidity — when the repo rate rises, loans (and EMIs) generally become costlier.

Example

If the RBI cuts the repo rate, banks can borrow cheaper and often pass on lower interest rates on home and car loans, reducing your EMI.

See Repo Rate history

Frequently asked questions

Related terms

Reverse Repo Rate CRR SLR EMI

Browse the full financial glossary. Educational only — not investment advice.