Quick answer The RBI raised the repo rate by 0.25% to 5.50% on 7 October 2026, and banks have started raising home loan rates — SBI to 7.50%–8.80% from 15 October. On a ₹50 lakh, 20-year loan, a 0.25% increase adds about ₹760 to the monthly EMI, or about 11 months to the loan if the EMI stays the same.
Home loan rates are going up. Here is what the October 2026 repo rate hike means for someone about to buy in the Tricity, and for someone already repaying a loan.
What happened
- 7 October 2026: the Reserve Bank raised the repo rate by 0.25% to 5.50%.
- 15 October 2026: SBI raised home loan rates by 0.25%; its regular home loans are now quoted at 7.50%–8.80%, depending on the borrower’s profile.
- Other lenders are revising their rates too. Check each bank’s own website for its current rate.
What a 0.25% rise does to your EMI
| Loan (20 years) | Old rate → new rate | Old EMI | New EMI | Extra per month |
|---|---|---|---|---|
| ₹50 lakh | 7.25% → 7.50% | ₹39,519 | ₹40,280 | ₹761 |
| ₹60 lakh | 8.00% → 8.25% | ₹50,186 | ₹51,124 | ₹938 |
| ₹80 lakh | 7.75% → 8.00% | ₹65,676 | ₹66,915 | ₹1,239 |
Over a full 20-year term, the ₹50 lakh example adds about ₹1.8 lakh in interest. Try your own figures in our EMI calculator.
If you already have a loan
Most new home loans are linked to the repo rate, and the bank resets your rate on a fixed schedule. Many banks keep your EMI the same and extend the tenure. That feels painless but costs more: on the ₹50 lakh example, the loan runs about 11 months longer and total payments rise by roughly ₹4.4 lakh. If your budget allows, ask your bank to raise the EMI instead.
Three ways to offset the hike Prepay a lump sum when you can — even one extra EMI a year shortens the loan noticeably. Ask your bank whether you qualify for a lower spread over the repo rate. Or compare a balance transfer if another lender is meaningfully cheaper.
If you are about to buy
- Re-check your budget with the new rate in our affordability calculator and eligibility calculator.
- Keep a buffer. Plan your EMI at a rate about 1% higher than today’s, so a further rise does not strain you.
- Buying under construction? Compare pre-EMI and full EMI — a rate rise makes the longer pre-EMI period costlier.
- Read the basics in our home loan guide and first-time home buyer guide.
