Mint Explainer | What RBI's rate hike means for retail borrowers and lenders
The Reserve Bank of India (RBI) raised the repo rate by 25 basis points to 5.5% on Wednesday, its first increase in nearly four years. This hike will lead to higher equated monthly instalments (EMIs) for retail borrowers with floating-rate loans linked to the repo rate, affecting over 68% of such loans. Borrowers should prepare for increased payments or extended loan tenures.