What will be the effect of RBI’s decision on your EMI, SBI, HDFC, how much installment to be paid in ICICI Bank now

The Reserve Bank of India’s (RBI) Monetary Policy Committee has not changed interest rates this time. The repo rate has been maintained at 4 per cent. Prior to this, however, interest rates were cut by 40 basis points in May and 75 basis points in March. After which most of the banks also changed their loan rates. After which the interest rate of home loan has come down to 15 years.

Almost all major banks, including State Bank of India and HDFC Bank, have significantly reduced their home loan rates. The interest rate of some banks has come down to around seven per cent. Home loan rates may remain at current levels due to a rate cut this time.

What is the repo rate

It is now 5 per cent, up from 6.25 per cent last year. This reduced rate will benefit bank customers as home and auto loans will become cheaper. Between February 2019 and October 2019, the repo rate was reduced by 135 basis points. Since then, rates have fallen 1.15 percent. That is a 2.5 per cent drop in rates since February last year.

See EMI calculation

If you have taken a home loan of Rs 25 lakh for 20 years. If you take SBI loan rates on home loans, SBI has an interest rate of 7% on home loans.


Current interest rate: 7 percent

Home loan: Rs 30 lakh

Term: 20 years

EMI per month: Rs. 23,259

Total interest: Rs. 25,82,152

Total Payment: Rs. 55,82,152


Current interest rate: 7.35 percent

Home loan: Rs 30 lakh

Term: 20 years

EMI per month: Rs. 23,893

Total interest: Rs.27,34,412

Total payment: Rs. 57,34,412



Current interest rate: 8.10 percent

Home loan: Rs 25 lakh

Term: 20 years

EMI per month: Rs. 25,280

Total interest: Rs. 30,67,255

Total payment: Rs. 60,67,255