What is repo rate? How does it impact your home loan EMIs? Housing.com
The Reserve Bank of India (RBI) on April 5, 2024, left the repo rate unchanged at 6.50%. This is the 7th time in a row the banking regular has maintained a status quo on its key policy rate. Cumulatively, the RBI hiked the repo rate by 250 basis points in FY23. How changes in repo rate impact homebuyers? Every time the RBI makes a change in the repo rate, homebuyers are told that the cost of borrowing will become higher/lower because of the upwards/downward change in the lending rate. As the repo rate has such a significant bearing on your financials, it is important to know everything about it, and how it impacts your home loan liability. It is also essential to know how the reverse repo rate works to have a better clarity on the working of your home loans.
