Your home loan could get more expensive in the next few months — not dramatically, but enough to feel it in your monthly budget.
Citi expects the RBI to raise its lending rate twice before October — each hike of 0.25%. On a ₹50 lakh home loan, that adds roughly ₹800–900 to your monthly EMI per hike.
Not everyone agrees — Goldman Sachs thinks the RBI holds rates steady this week but stays cautious. So nothing is certain yet.
What this means for you
- If you're on a floating-rate home loan (meaning your EMI moves up or down with RBI's rate), your EMI could inch up by ₹1,500–1,800 over the next 6 months if both hikes happen.
- FD rates could edge up 0.25–0.50% too — if you have an FD maturing soon, waiting a little might get you a better return on your money.
- If you have extra savings sitting idle, this is a good moment to consider a partial prepayment on your loan — that means paying a lump sum toward your original loan amount now, so you owe less before rates rise.
What you can do
- Check if your home loan is floating-rate — log into your loan account or call your bank to confirm, so you're not caught off guard when rates move.
- If you have ₹50,000–₹1 lakh sitting idle, a partial prepayment now reduces the original loan amount (principal) you're paying interest on — before any hike kicks in.
Nothing is confirmed yet — but knowing this now gives you time to prepare, not panic.
Grow with clarity 🌱