RBI Rate Hike: How Much More Could Your Home, Auto & Personal Loan EMIs Cost?

The RBI’s 25 basis points repo rate hike could push up borrowing costs for millions of loan customers, with home loan EMIs likely to feel the impact quickly. Loans linked to external benchmarks are expected to reprice almost immediately, while other loans could become more expensive gradually. Nachiket Kelkar, Business Today, explains how the rate hike could affect current and future home, auto and personal loans and what borrowers should expect in the coming months. The discussion also looks at deposit rates, strong FCNR inflows and why banks may not be in a hurry to raise deposit rates despite the RBI’s latest policy move.