By Ashutosh Joshi, PGDM (Finance), B.Com · Page last reviewed:
The RBI raised the repo rate to 5.50% (from 5.25%) with effect from 7 Oct 2026. Floating-rate home loans linked to the repo rate usually rise by the same 0.25% at the next reset. FD rates may edge up. The next decision is due after the 2–4 Dec 2026 MPC meeting.
Key Highlights
- The RBI’s policy repo rate is 5.50%, raised by 25 bps on 7 October 2026. It was the first hike since February 2023.
- SDF is 5.25%; MSF and Bank Rate are 5.75%. The MPC changed its stance to calibrated tightening.
- The next MPC meeting is scheduled for 2–4 December 2026; we update this page the same day.
- History below covers every repo change from June 2008, straight from the RBI Handbook of Statistics (Table 40).
The repo rate is what the RBI charges banks for short-term money. Most floating-rate home loans are linked to it through an external benchmark (EBLR), so a change usually reaches your EMI or tenure within about three months, at your bank’s next reset date. Read: repo hike & your EMI
What does the repo rate do to your loan?
Check your EMI at today’s rates, or see whether prepaying beats investing.
Your next questions, answered
What happens to my home-loan EMI now?
On a ₹50 lakh, 20-year loan, a rise from 8.00% to 8.25% takes the EMI from ₹41,822 to ₹42,603, about ₹781 more each month. Many banks keep the EMI and extend the tenure instead; ask your lender which they do.
What happens to my FD?
Existing FDs keep their booked rate. New FD rates often move up after a hike, but banks set them on their own, so compare before you renew.
Should I prepay my loan or invest a lump sum?
Take a ₹50 lakh, 20-year loan at 8.25% (EMI ₹42,603). If you prepay ₹5 lakh right at the start and keep paying the same EMI, the loan ends in 190 months instead of 240 (50 months sooner), and total interest falls from ₹52.25 lakh to ₹35.54 lakh, a saving of about ₹16.71 lakh compared with not prepaying. In effect, the ₹5 lakh earns a guaranteed, tax-free 8.25%. If you invest the ₹5 lakh instead, it could grow to ₹12.97 lakh in 10 years at 10%, or ₹15.53 lakh at 12%, before tax. Those returns are not guaranteed, and the two outcomes are not directly comparable because they cover different time periods.
Diving Finance view: expert take by Ashutosh Joshi
- Lump sums (bonus, maturity proceeds) go towards prepaying the home loan. The monthly surplus goes into SIPs.
- Take a longer home-loan tenure for a comfortable EMI, then prepay when you can. That keeps flexibility and cuts interest.
- Do not chase every repo move. Keep your emergency fund in FDs and let the loan reset as it will.
This is general guidance, not personal advice. Check your own goals, tax slab and risk appetite.
How it compares after tax and inflation
Assumptions in the comparisons: income-tax slabs of 30% and 20% plus 4% cess (31.2% and 20.8%), an illustrative bank FD at 7%, long-run inflation of 6% and equity SIP returns of 10–12%, as used by our author. These are planning assumptions, not forecasts.
What a 0.25% hike means for your EMI
Take a ₹50 lakh home loan for 20 years. At 8.00% the EMI is about ₹41,822. If your rate rises by 0.25% to 8.25%, it becomes about ₹42,603, roughly ₹781 more a month. Banks often keep the EMI the same and stretch the tenure instead, so check your loan statement after the reset. Try your own numbers
Repo rate history (every change since 2008)
Rates are shown from the effective date. Before 8 April 2022 the floor of the corridor was the reverse repo rate; since then it has been the Standing Deposit Facility (SDF).
| Effective date | Repo | Change | Floor (SDF / reverse repo) | MSF | Bank Rate | Source |
|---|---|---|---|---|---|---|
| Next MPC meeting: 2–4 Dec 2026 | Decision due 4 Dec | — | — | — | — | RBI ↗ |
| 07/10/2026 | 5.50% | +25 bps | 5.25% (SDF) | 5.75% | 5.75% | MPC statement ↗ |
| 05/12/2025 | 5.25% | -25 bps | 5.00% (SDF) | 5.50% | 5.50% | RBI Handbook T40 ↗ |
| 06/06/2025 | 5.50% | -50 bps | 5.25% (SDF) | 5.75% | 5.75% | RBI Handbook T40 ↗ |
| 09/04/2025 | 6.00% | -25 bps | 5.75% (SDF) | 6.25% | 6.25% | RBI Handbook T40 ↗ |
| 07/02/2025 | 6.25% | -25 bps | 6.00% (SDF) | 6.50% | 6.50% | RBI Handbook T40 ↗ |
| 08/02/2023 | 6.50% | +25 bps | 6.25% (SDF) | 6.75% | 6.75% | RBI Handbook T40 ↗ |
| 07/12/2022 | 6.25% | +35 bps | 6.00% (SDF) | 6.50% | 6.50% | RBI Handbook T40 ↗ |
| 30/09/2022 | 5.90% | +50 bps | 5.65% (SDF) | 6.15% | 6.15% | RBI Handbook T40 ↗ |
| 05/08/2022 | 5.40% | +50 bps | 5.15% (SDF) | 5.65% | 5.65% | RBI Handbook T40 ↗ |
| 08/06/2022 | 4.90% | +50 bps | 4.65% (SDF) | 5.15% | 5.15% | RBI Handbook T40 ↗ |
| 04/05/2022 | 4.40% | +40 bps | 4.15% (SDF) | 4.65% | 4.65% | RBI Handbook T40 ↗ |
| 08/04/2022 | 4.00% | 0 (other rate change) | 3.75% (SDF) | 4.25% | 4.25% | RBI Handbook T40 ↗ |
| 22/05/2020 | 4.00% | -40 bps | 3.35% (reverse repo) | 4.25% | 4.25% | RBI Handbook T40 ↗ |
| 17/04/2020 | 4.40% | 0 (other rate change) | 3.75% (reverse repo) | 4.65% | 4.65% | RBI Handbook T40 ↗ |
| 27/03/2020 | 4.40% | -75 bps | 4.00% (reverse repo) | 4.65% | 4.65% | RBI Handbook T40 ↗ |
| 04/10/2019 | 5.15% | -25 bps | 4.90% (reverse repo) | 5.40% | 5.40% | RBI Handbook T40 ↗ |
| 07/08/2019 | 5.40% | -35 bps | 5.15% (reverse repo) | 5.65% | 5.65% | RBI Handbook T40 ↗ |
| 06/06/2019 | 5.75% | -25 bps | 5.50% (reverse repo) | 6.00% | 6.00% | RBI Handbook T40 ↗ |
| 04/04/2019 | 6.00% | -25 bps | 5.75% (reverse repo) | 6.25% | 6.25% | RBI Handbook T40 ↗ |
| 07/02/2019 | 6.25% | -25 bps | 6.00% (reverse repo) | 6.50% | 6.50% | RBI Handbook T40 ↗ |
| 01/08/2018 | 6.50% | +25 bps | 6.25% (reverse repo) | 6.75% | 6.75% | RBI Handbook T40 ↗ |
| 06/06/2018 | 6.25% | +25 bps | 6.00% (reverse repo) | 6.50% | 6.50% | RBI Handbook T40 ↗ |
| 02/08/2017 | 6.00% | -25 bps | 5.75% (reverse repo) | 6.25% | 6.25% | RBI Handbook T40 ↗ |
| 06/04/2017 | 6.25% | 0 (other rate change) | 6.00% (reverse repo) | 6.50% | 6.50% | RBI Handbook T40 ↗ |
| 04/10/2016 | 6.25% | -25 bps | 5.75% (reverse repo) | 6.75% | 6.75% | RBI Handbook T40 ↗ |
| 05/04/2016 | 6.50% | -25 bps | 6.00% (reverse repo) | 7.00% | 7.00% | RBI Handbook T40 ↗ |
| 29/09/2015 | 6.75% | -50 bps | 5.75% (reverse repo) | 7.75% | 7.75% | RBI Handbook T40 ↗ |
| 02/06/2015 | 7.25% | -25 bps | 6.25% (reverse repo) | 8.25% | 8.25% | RBI Handbook T40 ↗ |
| 04/03/2015 | 7.50% | -25 bps | 6.50% (reverse repo) | 8.50% | 8.50% | RBI Handbook T40 ↗ |
| 15/01/2015 | 7.75% | -25 bps | 6.75% (reverse repo) | 8.75% | 8.75% | RBI Handbook T40 ↗ |
| 28/01/2014 | 8.00% | +25 bps | 7.00% (reverse repo) | 9.00% | 9.00% | RBI Handbook T40 ↗ |
| 29/10/2013 | 7.75% | +25 bps | 6.75% (reverse repo) | 8.75% | 8.75% | RBI Handbook T40 ↗ |
| 07/10/2013 | 7.50% | 0 (other rate change) | 6.50% (reverse repo) | 9.00% | 9.00% | RBI Handbook T40 ↗ |
| 20/09/2013 | 7.50% | +25 bps | 6.50% (reverse repo) | 9.50% | 9.50% | RBI Handbook T40 ↗ |
| 15/07/2013 | 7.25% | 0 (other rate change) | 6.25% (reverse repo) | 10.25% | 10.25% | RBI Handbook T40 ↗ |
| 03/05/2013 | 7.25% | -25 bps | 6.25% (reverse repo) | 8.25% | 8.25% | RBI Handbook T40 ↗ |
| 19/03/2013 | 7.50% | -25 bps | 6.50% (reverse repo) | 8.50% | 8.50% | RBI Handbook T40 ↗ |
| 29/01/2013 | 7.75% | -25 bps | 6.75% (reverse repo) | 8.75% | 8.75% | RBI Handbook T40 ↗ |
| 17/04/2012 | 8.00% | -50 bps | 7.00% (reverse repo) | 9.00% | 9.00% | RBI Handbook T40 ↗ |
| 13/02/2012 | 8.50% | 0 (other rate change) | 7.50% (reverse repo) | 9.50% | 9.50% | RBI Handbook T40 ↗ |
| 25/10/2011 | 8.50% | +25 bps | 7.50% (reverse repo) | 9.50% | — | RBI Handbook T40 ↗ |
| 16/09/2011 | 8.25% | +25 bps | 7.25% (reverse repo) | 9.25% | — | RBI Handbook T40 ↗ |
| 26/07/2011 | 8.00% | +50 bps | 7.00% (reverse repo) | 9.00% | — | RBI Handbook T40 ↗ |
| 16/06/2011 | 7.50% | +25 bps | 6.50% (reverse repo) | 8.50% | — | RBI Handbook T40 ↗ |
| 03/05/2011 | 7.25% | +50 bps | 6.25% (reverse repo) | 8.25% | — | RBI Handbook T40 ↗ |
| 17/03/2011 | 6.75% | +25 bps | 5.75% (reverse repo) | — | — | RBI Handbook T40 ↗ |
| 25/01/2011 | 6.50% | +25 bps | 5.50% (reverse repo) | — | — | RBI Handbook T40 ↗ |
| 02/11/2010 | 6.25% | +25 bps | 5.25% (reverse repo) | — | — | RBI Handbook T40 ↗ |
| 16/09/2010 | 6.00% | +25 bps | 5.00% (reverse repo) | — | — | RBI Handbook T40 ↗ |
| 27/07/2010 | 5.75% | +25 bps | 4.50% (reverse repo) | — | — | RBI Handbook T40 ↗ |
| 02/07/2010 | 5.50% | +25 bps | 4.00% (reverse repo) | — | — | RBI Handbook T40 ↗ |
| 20/04/2010 | 5.25% | +25 bps | 3.75% (reverse repo) | — | — | RBI Handbook T40 ↗ |
| 19/03/2010 | 5.00% | +25 bps | 3.50% (reverse repo) | — | — | RBI Handbook T40 ↗ |
| 21/04/2009 | 4.75% | -25 bps | 3.25% (reverse repo) | — | — | RBI Handbook T40 ↗ |
| 05/03/2009 | 5.00% | -50 bps | 3.50% (reverse repo) | — | — | RBI Handbook T40 ↗ |
| 05/01/2009 | 5.50% | -100 bps | 4.00% (reverse repo) | — | — | RBI Handbook T40 ↗ |
| 08/12/2008 | 6.50% | -100 bps | 5.00% (reverse repo) | — | — | RBI Handbook T40 ↗ |
| 03/11/2008 | 7.50% | -50 bps | — | — | — | RBI Handbook T40 ↗ |
| 20/10/2008 | 8.00% | -100 bps | — | — | — | RBI Handbook T40 ↗ |
| 30/07/2008 | 9.00% | +50 bps | — | — | — | RBI Handbook T40 ↗ |
| 25/06/2008 | 8.50% | +50 bps | — | — | — | RBI Handbook T40 ↗ |
| 12/06/2008 | 8.00% | — | — | — | — | RBI Handbook T40 ↗ |
Repo rate chart
Source: DivingFinance, RBI Repo Rate Today & MPC Rate History, https://divingfinance.com/rates/repo-rate/ (data: RBI; updated 21 Oct 2026)FAQs
What is the repo rate today?
5.50%, effective 7 October 2026, after the MPC raised it by 25 basis points.
When is the next MPC meeting?
The RBI says the next meeting is scheduled for 2–4 December 2026. We update this page the same day.
What was the lowest repo rate in recent years?
4.00%, effective 22 May 2020, held until the hikes that began on 4 May 2022.
How does the repo rate affect my home loan?
Repo-linked (EBLR) loans move with it at the next reset, so either your EMI or your tenure changes.
What is the difference between SDF and reverse repo?
Since 8 April 2022 the SDF is the floor of the RBI's rate corridor, where banks park surplus funds without collateral. Before that, the reverse repo rate played this role.
Do FD rates rise when the repo rate rises?
Usually, but slowly and not one-for-one. Banks decide their own deposit rates.
What happens to my home-loan EMI now?
On a ₹50 lakh, 20-year loan, a rise from 8.00% to 8.25% takes the EMI from ₹41,822 to ₹42,603, about ₹781 more each month. Many banks keep the EMI and extend the tenure instead; ask your lender which they do.
What happens to my FD?
Existing FDs keep their booked rate. New FD rates often move up after a hike, but banks set them on their own, so compare before you renew.
Should I prepay my loan or invest a lump sum?
Take a ₹50 lakh, 20-year loan at 8.25% (EMI ₹42,603). If you prepay ₹5 lakh right at the start and keep paying the same EMI, the loan ends in 190 months instead of 240 (50 months sooner), and total interest falls from ₹52.25 lakh to ₹35.54 lakh, a saving of about ₹16.71 lakh compared with not prepaying. In effect, the ₹5 lakh earns a guaranteed, tax-free 8.25%. If you invest the ₹5 lakh instead, it could grow to ₹12.97 lakh in 10 years at 10%, or ₹15.53 lakh at 12%, before tax. Those returns are not guaranteed, and the two outcomes are not directly comparable because they cover different time periods.
Related rates
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Repo, small savings, EPF, CPI and tax slabs, each with its source and date.
Change log
- 21 Oct 2026 – Page created with repo history from RBI Handbook Table 40 and the 7 Oct 2026 MPC decision.
How we collect this data
All rates come from the RBI: Handbook of Statistics Table 40 for history, and MPC statements and LAF circulars for new decisions. We carry a value forward only where the RBI table marks “no change”. Read our editorial policy and how we calculate. For information only, not investment advice.