RBI rate hike to make home, car loans costlier
The Reserve Bank of India raised its policy rate by 25 basis points to 5.50% on Wednesday, marking its first increase since February 2023. This hike will lead to higher borrowing costs for home, car, and personal loans, affecting 68.2% of banks' floating-rate loans. Borrowers can expect increased monthly payments or extended repayment periods as rates reset in the coming months.