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Repo rate guide
What RBI's rate means for your home loan, and what to do when it changes.
When RBI changes the rate, what happens to your home loan?
The repo rate is the rate at which RBI lends to banks. It is 5.50% now, after a rise on 7 Oct 2026. Some home loans follow it by themselves. Others do not, unless you ask. Tap the chart to see what each change meant for a loan like yours.
Look for the words on your statement: repo, EBLR or RLLR means it follows repo. MCLR, base rate or BPLR means an older loan.
An example, not your loan. We assume your rate is repo plus 2.75%, a common level, and that your lender passed each change through in full. Real loans reset on their own dates, so your figures will differ.
View every change as a table
| Date | Change | Repo rate |
|---|---|---|
| 28 Jan 2014 | Raised by 0.25% | 7.75% to 8.00% |
| 15 Jan 2015 | Cut by 0.25% | 8.00% to 7.75% |
| 4 Mar 2015 | Cut by 0.25% | 7.75% to 7.50% |
| 2 Jun 2015 | Cut by 0.25% | 7.50% to 7.25% |
| 29 Sept 2015 | Cut by 0.50% | 7.25% to 6.75% |
| 5 Apr 2016 | Cut by 0.25% | 6.75% to 6.50% |
| 4 Oct 2016 | Cut by 0.25% | 6.50% to 6.25% |
| 2 Aug 2017 | Cut by 0.25% | 6.25% to 6.00% |
| 6 Jun 2018 | Raised by 0.25% | 6.00% to 6.25% |
| 1 Aug 2018 | Raised by 0.25% | 6.25% to 6.50% |
| 7 Feb 2019 | Cut by 0.25% | 6.50% to 6.25% |
| 4 Apr 2019 | Cut by 0.25% | 6.25% to 6.00% |
| 6 Jun 2019 | Cut by 0.25% | 6.00% to 5.75% |
| 7 Aug 2019 | Cut by 0.35% | 5.75% to 5.40% |
| 4 Oct 2019 | Cut by 0.25% | 5.40% to 5.15% |
| 27 Mar 2020 | Cut by 0.75% | 5.15% to 4.40% |
| 22 May 2020 | Cut by 0.40% | 4.40% to 4.00% |
| 4 May 2022 | Raised by 0.40% | 4.00% to 4.40% |
| 8 Jun 2022 | Raised by 0.50% | 4.40% to 4.90% |
| 5 Aug 2022 | Raised by 0.50% | 4.90% to 5.40% |
| 30 Sept 2022 | Raised by 0.50% | 5.40% to 5.90% |
| 7 Dec 2022 | Raised by 0.35% | 5.90% to 6.25% |
| 8 Feb 2023 | Raised by 0.25% | 6.25% to 6.50% |
| 7 Feb 2025 | Cut by 0.25% | 6.50% to 6.25% |
| 9 Apr 2025 | Cut by 0.25% | 6.25% to 6.00% |
| 6 Jun 2025 | Cut by 0.50% | 6.00% to 5.50% |
| 5 Dec 2025 | Cut by 0.25% | 5.50% to 5.25% |
| 7 Oct 2026 | Raised by 0.25% | 5.25% to 5.50% |
Source: RBI monetary policy press releases. Latest: RBI: Monetary Policy Statement 2026-27, MPC resolution, 7 Oct 2026.
What should I do, and when?
The rules behind this
- Loans that follow repo must reset at least once every three months. For banks, RBI requires new floating home loans to follow an external benchmark such as repo since October 2019.
- Older loans (MCLR, base rate, BPLR) carry on until repaid or renewed. Banks must offer to switch you to a repo-linked rate. On most floating home loans RBI allows only reasonable admin and legal costs for this. Many lenders still charge a conversion fee, so ask for the amount in writing.
- Your spread (the fixed extra % over repo) can be cut early by a bank that chooses to. It is not automatic. Housing finance companies and NBFCs are not bound by the bank rule to follow repo, so ask yours which benchmark it uses.
- When your EMI or loan length changes, RBI's August 2023 rules say your lender must tell you, and let you pick a higher EMI, a longer loan, or both.
- Part-payments: RBI's 2025 directions bar prepayment charges on floating-rate loans to individuals for loans sanctioned or renewed from 1 January 2026. Earlier rules already covered most floating home loans. Check your agreement.
Sources: RBI Directions on Interest Rate on Advances (external benchmark, reset, spread and switching), RBI/2023-24/55 (18 Aug 2023), RBI/2025-26/64 (2 Jul 2025). The fee example comes from one lender's published fee page. Lenders change fees, so confirm yours.
Common questions
What is the repo rate?
The rate at which RBI lends to banks. Most new floating home loans are priced as the repo rate plus a fixed spread.
How fast should my EMI change after a repo cut?
At your next reset date, usually within three months for repo-linked loans. Older MCLR loans reset only every 6 or 12 months.
Do I get the benefit automatically?
On a repo-linked floating loan, yes. Older loans may need a written request to switch.