Will My Loan Rate Change?
RBI raised the repo rate on 07 Oct 2026. Will your loan rate change, when, and by how much? Choose your loan type, enter a few details, and see your new EMI or tenure in plain words.
Which rates affect which loans?
| Your loan is linked to | Does an RBI repo change affect it? | When? |
|---|---|---|
| Repo rate (EBLR / RLLR) | Yes, by the full change | At the next reset, at least once in 3 months |
| MCLR | Only indirectly, when the bank changes its MCLR | Only on your reset date (usually every 6 or 12 months) |
| Base Rate / BPLR | Rarely, when the bank changes its base rate | When the bank revises it |
| Fixed rate | No | Never during the fixed period |
Repo rate history
| Date of RBI decision | Repo rate | Change |
|---|---|---|
| 07 Oct 2026 | 5.50% | â–² +0.25 |
| 05 Dec 2025 | 5.25% | â–¼ -0.25 |
| 06 Jun 2025 | 5.50% | â–¼ -0.50 |
| 09 Apr 2025 | 6.00% | â–¼ -0.25 |
| 07 Feb 2025 | 6.25% | â–¼ -0.25 |
| 08 Feb 2023 | 6.50% |
Source: RBI Monetary Policy Committee, 5–7 October 2026. Policy rates are updated after every RBI policy decision.
Frequently asked questions
RBI changed the repo rate. Will my home loan EMI change?
Only if your loan is linked to the repo rate (EBLR or RLLR), and then from your next reset date, which is at least once in three months. MCLR loans change only on their reset date (usually yearly) and by the bank's MCLR change. Base rate loans change only when the bank changes its base rate. Fixed-rate loans do not change.
Why didn't my EMI reduce after RBI cut the repo rate?
Usually because your loan is on MCLR or base rate, your reset date has not come yet, or the bank reduced your tenure instead of your EMI. Check your loan statement or sanction letter for the benchmark and the reset date.
What is the difference between repo rate, MCLR, RLLR and base rate?
The repo rate is the rate at which RBI lends to banks. RLLR/EBLR is a bank's lending rate linked directly to the repo rate. MCLR is a bank's internal rate based on its own cost of funds, which moves slowly. Base rate is the older system that MCLR replaced in 2016.
When RBI raises the rate, can the bank increase my tenure instead of EMI?
The bank must inform you and let you choose a higher EMI, a longer tenure, a combination, prepayment, or a switch to a fixed rate. A higher EMI usually saves interest compared with a longer tenure.
Can I switch my loan from MCLR or base rate to a repo-linked rate?
Yes. Existing borrowers can request a switch to an external benchmark (repo-linked) rate on terms agreed with the bank, usually for a one-time fee. Compare the new rate offered for your profile and the fee before deciding.
What is the Bank Rate?
The Bank Rate is the rate at which RBI lends to banks for longer periods, and it is used for some penalties and compensations. It is currently 5.75%, the same as the marginal standing facility (MSF) rate.
Related: Repo, MCLR, RLLR explained simply · EMI calculator with prepayment · Letter: choose EMI or tenure on rate reset
Built by Sathikbasha, a banking professional from Pondicherry, India. Results are estimates for guidance only; your bank's documents are the final reference. Views expressed on this website are personal and do not represent any employer or institution. Content is for general awareness and education only and is not financial or investment advice.