RBI maintains the repo rate, keeping home loan EMIs stable and allowing borrowers to save up to ₹13.9 lakh

Key Insights 

1. The RBI's Monetary Policy Committee (MPC) has decided in the April 6–8, 2026, meeting to keep the policy repo rate the same at 5.25%. 

2. The RBI cut the repo rate by a cumulative 125 basis points, bringing it down from 6.50% to 5.25%, and those gains remain locked in for borrowers today.

RBI Maintains Repo Rate at 5.25%, Offering Relief to Home Loan Borrowers

In India, where loan rates are linked to the repo rate, the benefits of this flow through to EMIs, preserving affordability for both existing and new home loan customers.

The ongoing conflict in West Asia has introduced severe volatility into global markets, with Brent crude surging to over $100 per barrel, creating substantial inflation risks for India. 

If inflation accelerates sharply, the RBI could be forced to revisit its neutral view, which may put future EMI stability at risk.

What This Means for Crores of Indian Borrowers

For someone with a ₹50 lakh home loan over 20 years before repo rate cuts got the interest rate down from around 8.50% to 7.25%, reducing the EMI from about ₹43,391 to ₹39,519. 

 

A monthly saving of roughly ₹3,057 and a total interest saving of nearly ₹7.34 lakh over the loan tenure.

For those with a ₹75,00,000 loan, monthly savings reach ₹5,800, translating into total interest savings of roughly ₹13.94 lakh a life-changing number for the Indian family.

For the 15 crore Indians paying home loans, this is a major relief. 

Public sector giants like State Bank of India and Bank of Baroda are now offering home loans starting at 7.10–7.35%, down from 8.50–9.00% at the 2025.

The rate pause means these savings will no longer be eroded, giving families better monthly cash flow and financial certainty.

What Are Experts Saying And What Should You Do?

Adhil Shetty, CEO of BankBazaar, said: 

“The RBI has held the repo rate at 5.25% for the second successive meeting, but the context this time is meaningfully different.

The MPC has flagged a supply shock driven by the West Asia conflict, with crude oil surging well above its own planning assumptions.

The unanimous decision to hold reflects a calculated choice to wait and watch before acting in either direction.”

Borrowers on older loan rules, such as base rate or MCLR should consider whether switching to a repo-linked loan could offer better clarity and faster rate transmission.

Those with existing floating-rate loans linked to external benchmarks will continue to benefit as any rate hike would directly translate into higher EMIs.

Conclusion

The RBI's choice to keep the repo rate at 5.25% is a careful pause, not a setback. Borrowers are still benefiting from the sharp rate cuts in 2025, saving up to ₹13.9 lakh on bigger loans. For now, stability is the main advantage.

FAQs

Is the RBI just holding the rate at 5.25%? 

Yes, the Reserve Bank of India (RBI) unanimously held the repo rate regular at 5.25% during its April 8, 2026, meeting. 

Is it possible for home loan EMI to decrease after the recent decrease in the repo rate by the Reserve Bank of India (RBI)? 

Yes, home loan EMIs can decrease following an RBI repo rate cut, particularly for borrowers with floating-rate loans linked to the External Benchmark Lending Rate (EBLR).