Repo rate today: what a change means for your home loan
What the repo rate today means for you
In short: The repo rate today is 5.50 per cent, after the RBI raised it by 25 bps on 7 October 2026. If your home loan is repo-linked, that reaches your EMI or tenure at your next reset.
The headline gives a number. It doesn't tell you the thing you want to know: does my loan move, and by how much? That depends on two details in your sanction letter, not on the news. If you want to test the effect on your own numbers, enter your outstanding loan, EMI and rate on Butter Money's overpayment page to see what a lower rate would save you.
Below: how to tell whether your loan follows the repo rate, where to read the official figure yourself, what changes when it moves, and why your lender's spread matters as much as the benchmark.
How do you tell if your loan is linked to the repo rate?
Open your sanction letter or loan agreement and look for the word "benchmark". Three things can be written there.
- Repo-linked (EBLR). The letter names the RBI's repo rate as the external benchmark. Your rate is the repo rate plus a spread the lender fixed.
- Another external benchmark. The letter names a different published rate. It is still external, but it does not follow the repo rate one for one.
- MCLR or an older base rate. The rate is built from the lender's own cost of funds. The RBI's repo move feeds into it only slowly, at the lender's pace.
Why do these differ so much? Since 1 October 2019, banks must link new floating rate personal or retail loans to an external benchmark. That is the RBI circular "External Benchmark Based Lending" (RBI/2019-20/53), dated 4 September 2019. It also says the rate under the external benchmark shall be reset at least once in three months. A loan taken before that date may still sit on MCLR. The same circular says existing borrowers "shall have the option to move to External Benchmark at mutually acceptable terms", So it is a conversation with your lender, and worth having. Not sure which one you're on? Ask their support team. For anything contractual, a lawyer is the right person.
Also look for the reset date. A repo-linked loan resets on a schedule written in the letter, not the day the RBI speaks.
Where to check the repo rate today
Don't rely on a lender's blog or an old screenshot. Read the RBI's own page. On 7 October 2026 the Monetary Policy Committee, after its meeting of 5 to 7 October, voted to increase the policy repo rate under the liquidity adjustment facility by 25 bps to 5.50 per cent. The same resolution put the Standing Deposit Facility rate at 5.25 per cent and the Marginal Standing Facility rate at 5.75 per cent. That is the figure as of October 2026, and the news report of the same meeting says the vote was unanimous.
It will change again at some meeting, and I won't guess when. When it does, the same path works: the RBI's press releases list the Monetary Policy Statement with its date. Quote the date whenever you quote the rate. A number without a date is how people end up arguing about last quarter's news.
EMI or tenure: what actually changes?
Say the repo rate goes up and your loan is repo-linked. Your lender has two levers: a bigger EMI, or more months. For example, with an EMI of ₹10,000, the lender can keep it at ₹10,000 and run the loan longer, or raise it and keep the end date.
The RBI circular RBI/2023-24/55, dated 18 August 2023 and updated as on 1 October 2025, speaks to exactly this. At sanction, the lender must tell you how a change in the benchmark could affect your EMI, your tenor, or both. You may choose to raise the EMI, extend the tenor, or do a mix. The tenor cannot be stretched so far that the loan ends up growing (the RBI's term is negative amortisation). You can also prepay part or all of the loan. Any EMI or tenor increase must be communicated to you immediately, and the quarterly statement shows your EMIs remaining and the annualised rate.
So what's the difference in practice?
| What you choose | Monthly outgo | Months left | Total interest |
|---|---|---|---|
| Keep the EMI, extend the tenor | Same | More | Higher |
| Raise the EMI, keep the tenor | Higher | Same | Lower than extending |
| A bit of both | Slightly higher | Slightly more | In between |
How a repo rate rise can reach a repo-linked loan
Source: RBI circular RBI/2023-24/55
Keeping the EMI feels easier, and it is the quieter way to pay more. Months you add are months of interest. If your budget can take it, a slightly higher EMI ends the loan sooner. If it can't, extending is a fair call; just know what you chose.
Why the spread matters as much as the benchmark
Your rate is the benchmark plus the spread. The repo rate moves for everyone on a repo-linked loan together. The spread is the part that differs from one borrower to the next, and it doesn't move when the RBI does.
The 2019 circular limits when it can change: the credit risk premium may change "only when borrower's credit assessment undergoes a substantial change, as agreed upon in the loan contract." That makes the spread the number worth reading twice at the start, because it can stay with you for the whole loan.
Two borrowers on the same benchmark can pay different rates, purely because of the spread. And when the repo rate falls, a lender with a high spread still charges you more than a lender with a low one. If you're on a repo-linked loan with a spread you think is high, a lower-rate offer from another lender is the usual route.
A short check you can do tonight
- Find the sanction letter. Note the benchmark name and the spread.
- Note the reset frequency and the next reset date.
- Look at your last quarterly statement: EMI, EMIs remaining, annualised rate.
- Check the latest RBI Monetary Policy Statement on rbi.org.in, with its date.
- Compare your rate with a fresh offer. That is the only way to see whether your spread is fair.
Frequently asked questions
Is the repo rate the same as my home loan rate?
No. The repo rate is the rate at which the RBI lends to banks. Your home loan rate is the benchmark plus the lender's spread. On a repo-linked loan the two move together when the benchmark resets; the spread is the lender's own.
Does my EMI go up straight away when the RBI raises the repo rate?
Not on the day. A repo-linked loan changes at its next reset, and the 2019 RBI circular says the external benchmark rate must be reset at least once in three months. Your sanction letter gives your reset date.
Can I choose between a higher EMI and a longer tenor?
Under the RBI circular of 18 August 2023, you may choose to raise the EMI, extend the tenor or combine both, and the lender must explain at sanction how a benchmark change could affect each. You can also prepay in part or full, subject to the lender's prepayment rules.
Is the repo rate today going to change again soon?
I can't say, and neither can the headlines. The RBI publishes its decisions after each Monetary Policy Committee meeting. Read the date on the statement and decide from your own numbers.
My loan is on MCLR. Should I move to a repo-linked loan?
It may be worth asking. The 2019 circular lets existing borrowers move to an external benchmark at mutually acceptable terms. Ask what the fee and the new spread would be, then compare with the current offer. A lawyer can help with anything contractual.
