Banks may adjust tenure or EMI as RBI lifts repo to 5.5%

Following the RBI’s repo rate hike to 5.50%, banks are expected to recalibrate the pricing of floating home loans. The usual practice is to either raise the borrowers’ EMI or keep the EMI unchanged while lengthening the repayment period. The choice depends on the lender’s risk appetite, the borrower’s credit profile, and the specific terms outlined in the loan agreement. Customers should stay alert to notifications on their banks’ official portals, as each institution may apply the rate change in its own manner. Failure to adapt could result in a noticeable increase in the monthly outflow for homeowners who have not yet refinanced into a fixed‑rate product.