What is the repo rate after RBI’s October 2026 policy?

RBI raised the repo rate by 25 basis points to 5.50% on 7 October 2026, from 5.25%, in a unanimous MPC vote. The SDF rate is 5.25% and the MSF rate is 5.75%. The stance changed to “calibrated tightening”, and RBI said future moves can only be a hike or a pause.

Will my home loan EMI increase immediately?

Not immediately. For repo-linked (EBLR/RLLR) loans, the new rate applies from your loan’s next reset date, and these loans reset at least once every three months. MCLR-linked loans change when the bank revises its MCLR and your reset date arrives. Many lenders extend the tenure by default instead of raising the EMI.

Does the repo rate hike affect my personal loan or credit card EMI?

Fixed-rate personal loans and existing credit card EMIs don’t change. Card interest rates are set by issuers and are not linked to the repo rate. New loans may be priced higher.

Should I choose a higher EMI or a longer tenure?

A higher EMI usually keeps total interest much lower. On an illustrative ₹50 lakh, 20-year loan, a 25 bps rise adds about ₹1.84 lakh over the term through a higher EMI, against about ₹4.56 lakh if the tenure is extended instead. Under RBI rules, you can choose either option or a mix at reset, and you can prepay.

Will FD rates go up after the repo hike?

They may, but deposit rates are set by each bank and often lag loan rates. RBI data shows fresh deposit rates actually eased in July–August 2026 even as loan rates firmed. Compare current rates and consider spreading deposits across several maturities instead of trying to time the peak.

RBI repo rate hike to 5.50% (Oct 2026): what it means for your EMIs, festive loans and savings

Skip to content

RBI repo rate hike to 5.50% (Oct 2026): what it means for your EMIs, festive loans and savings | Spendzie