RBI Repo Rate August 2023: Will Home Loan Interest, EMI Increase?

Photos: Pixabay Photos: Pixabay Aug 10, 2023 Rajeev Kumar

Repo rate impact: RBI declared its August 2023 monetary policy today. RBI was expected to keep the repo rate hike in pause mode. Read on to know how it will impact borrowers

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RBI Governor Shaktikanta Das said "Monetary Policy Committee decided unanimously to keep the Repo Rate unchanged at 6.50%"

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Experts say the RBI’s decision to keep the repo and the reverse repo rates unchanged was aligned with the market expectations. The decision signifies that the end of rate hikes cycle is near.

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No change in repo rate means home loan borrowers can continue to pay same EMI and interest as earlier. There will not be any change.

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Situation 1: If the repo rate is hiked, home loan EMIs and interest rates will increase. This is because most of the home loans offered by banks are now linked to Repo Rate.

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Situation 2: If the repo rate is not hiked, home loan EMIs and interest rates will not increase. You will continue to pay same EMI if you have a floating repo-rate linked loan.

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Situation 3: If the repo rate is decreased, home loan EMIs and interest rates will also decrease and provide much needed relief to homebuyers.

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The RBI was expected to neither increase nor decrease the repo rate.

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Experts say that the present inflation rate in India is reported to be running at less than 5%, which has provided some room for the central bank to maintain a steady monetary policy.

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RBI Repo Rate August 2023: Will Home Loan Interest, EMI Increase?

RBI Repo Rate August 2023: Will Home Loan Interest, EMI Increase?

Repo rate impact: RBI declared its August 2023 monetary policy today. RBI was expected to keep the repo rate hike in pause mode. Read on to know how it will impact borrowers

Repo rate impact: RBI declared its August 2023 monetary policy today. RBI was expected to keep the repo rate hike in pause mode. Read on to know how it will impact borrowers

RBI Governor Shaktikanta Das said "Monetary Policy Committee decided unanimously to keep the Repo Rate unchanged at 6.50%"

RBI Governor Shaktikanta Das said "Monetary Policy Committee decided unanimously to keep the Repo Rate unchanged at 6.50%"

What RBI has decided?

What RBI has decided?

Experts say the RBI’s decision to keep the repo and the reverse repo rates unchanged was aligned with the market expectations. The decision signifies that the end of rate hikes cycle is near.

Experts say the RBI’s decision to keep the repo and the reverse repo rates unchanged was aligned with the market expectations. The decision signifies that the end of rate hikes cycle is near.

No change in repo rate means home loan borrowers can continue to pay same EMI and interest as earlier. There will not be any change.

No change in repo rate means home loan borrowers can continue to pay same EMI and interest as earlier. There will not be any change.

Situation 1: If the repo rate is hiked, home loan EMIs and interest rates will increase. This is because most of the home loans offered by banks are now linked to Repo Rate.

Situation 1: If the repo rate is hiked, home loan EMIs and interest rates will increase. This is because most of the home loans offered by banks are now linked to Repo Rate.

How repo rate impacts home loan?

How repo rate impacts home loan?

Situation 2: If the repo rate is not hiked, home loan EMIs and interest rates will not increase. You will continue to pay same EMI if you have a floating repo-rate linked loan.

Situation 2: If the repo rate is not hiked, home loan EMIs and interest rates will not increase. You will continue to pay same EMI if you have a floating repo-rate linked loan.

Situation 3: If the repo rate is decreased, home loan EMIs and interest rates will also decrease and provide much needed relief to homebuyers.

Situation 3: If the repo rate is decreased, home loan EMIs and interest rates will also decrease and provide much needed relief to homebuyers.

The RBI was expected to neither increase nor decrease the repo rate.

The RBI was expected to neither increase nor decrease the repo rate.

What RBI was expected to do?

What RBI was expected to do?

Experts say that the present inflation rate in India is reported to be running at less than 5%, which has provided some room for the central bank to maintain a steady monetary policy.

Experts say that the present inflation rate in India is reported to be running at less than 5%, which has provided some room for the central bank to maintain a steady monetary policy.

Next: Smart ways to close home loan fast

Next: Smart ways to close home loan fast