Finance

EMIs start rising as RBI ups key rate 50 bps, fourth hike in five months

Reserve Bank of India headquarter. [File Photo]

New Delhi: The Reserve Bank of India’s fourth interest rate hike in five months will spike equated monthly installments (EMIs) for individual borrowers and could impact consumption and demand for loans

The latest repo rate hike, aimed at reining in inflation, will make all borrowings, home loans included, more expensive. Several banks, led by SBI have already hiked lending rates, a report by Times of India said.

The report said for those who took home loans before the May 4, 2022 rate hike, this is a major shock. Banks that had pushed rates to 6.6% will now re-price the loan at 8.5%. Borrowers who don’t have room to extend tenure will see EMIs rise by 15%.

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