News > Loan EMIs to rise as RBI increases repo rate by 50 bps
Loan EMIs to rise as RBI increases repo rate by 50 bps
Forevernews | 05/08/2022 04:05 PM | Click to read full article
The EMIs on the loan will rise as the Reserve Bank of India (RBI) on Friday hiked the repo rate by 50 basis points to 5.40 per cent to contain inflation. Several banks have already raised their borrowing rates and some will again increase their rates after this hike by the central bank.
Whenever the central bank increases the repo rate it is worrisome for existing and upcoming borrowers as their EMIs and interest rises. According to the RBI norms, banks are required to link the interest rates of loans with an external benchmark, which is generally the RBI’s repo rate.