Will Your EMIs Change? RBI Keeps Repo Rate at 5.5% - Here's What It Means for You
The Reserve Bank of India's Monetary Policy Committee chaired by central bank governor Sanjay Malhotra has kept the repo rate unaltered. Find how does it affect your EMI and borrowing abilities.
- Republic Business
- 2 min read
RBI MPC Meet Impact: The Reserve Bank of India (RBI)'s Monetary Policy Committee (MPC) chaired by central bank governor Sanjay Malhotra has kept the repo rate unaltered at 5.5 per cent unanimously after three consecutive cuts earlier this year. While this decision ushers in stability but there is no immediate relief or increase for borrowers
With the repo rate, the interest rate at which India's apex bank lends to commercial banks, was reduced from 6.5% to 5.5% across two cuts and now is steady with the central bank maintaining a wait and watch approach to assess inflation trends.
During the period of May 2020 and April 2022, India's top bank-maintained a steady repo rate of 4%. Following this period till February 2023, the RBI gradually increased policy rates to 6.5%, maintaining the same for two years until the most recent reductions.
As RBI maintained status quo in the MPC meeting held today, this translates into no immediate alterations in deposit or borrowing costs, it also offers a window for banks to fully transmit benefit of previous rate cuts.
RBI's August MPC Meet & Impact On Borrowers
With the repo rate remains unchanged, current borrowers will witness no change in their EMIs. Meanwhile, fresh borrowers will find loan interest rates holding steady.
On the other hand, both public and private sector lenders are expected to keep current rates unchanged linked to personal and home loans, until there's a need to adjust margins for certain lending institutions.
RBI Repo Rate Status Quo: Impact on Auto Loan EMI
Instance: ₹60 lakh home loan for 20 years at 8.20% interest rate
Present EMI: ₹50,999
New EMI: ₹50,999
Monthly Savings: ₹0
Annual Savings: ₹0
As the RBI MPC on August 6, 2025, decided to keep the repo rate unchanged at 5.50%, the EMI remains the same.
Does The RBI MPC Status Quo Impact Personal Loan EMI?
Instance: Rs 10 lakh personal loan for 4 years at 14% interest rate
Current EMI: ₹27,276
New EMI: ₹27,276
Monthly Savings: ₹0
Annual Savings: ₹0
Published By : Nitin Waghela
Published On: 6 August 2025 at 11:56 IST