Your EMIs May Increase as RBI Raises Repo Rate

New Delhi: The RBI of Wednesday decided to increase its repo rate by 35 basic points. This latest decision of the RBI will have an impact on general customers of banks.

Repo rate is the interest rate at which the Central bank lends money to Commercial Banks. If this interest rate is hiked, then the commercial banks will have to procure extra interest on loans given to the customers.

As a result of it, Commercial Banks are expected to increase the EMIs that customers have to pay up the banks towards their loans. It means the EMI payable towards the home loan, vehicle loan, and other loans is expected to go up.