How will RBI's 1st repo rate hike in 4 years affect loan EMIs and FDs?
RBI's decision to hike repo rate by 25 bps, its first hike in four years, is likely to push up EMIs for borrowers with floating-rate home loans. For a ₹50 lakh loan at 7.5% over 25 years, the EMI could increase by roughly ₹817. Meanwhile, those looking to invest in fixed deposits could get higher interest rates following the hike.