RBI Repo Rate Unchanged Impact: The Reserve Bank of India (RBI) on Friday, June 5, decided to maintain the repo rate unchanged at 5.25 per cent for the third time in a row. This decision brings stability for borrowers or depositors.
The central bank has reduced the repo rate by 125 basis points to 5.25% since February 2025. The previous rate cut took place in the December 2025 policy, following which the RBI MPC has kept the policy rate unchanged in the successive three monetary policy reviews.
Since the repo rate remains unchanged:
Existing borrowers will not see any change in their EMIs.
New borrowers will find loan interest rates holding steady, for now.
Public and private sector banks are expected to maintain current rates on home, auto, and personal loans, unless they choose to adjust margins individually.
Example: Rs 50 lakh home loan for 30 years at 8.20% interest rate
Current EMI: Rs 37,346
New EMI: Rs 37,346
Monthly Savings: Rs 0
Annual Savings: Rs 0
RBI kept the repo rate unchanged at 5.25%, your EMI stays the same.
RBI Repo Rate Status Quo: Impact on Personal Loan EMI
Example: Rs 5 lakh personal loan for 5 years at 12% interest rate
Current EMI: Rs 11,122
New EMI: Rs 11,122
Monthly Savings: Rs 0
Annual Savings: Rs 0
No change in EMI as interest rates remain steady.
Home loan borrowers on repo-linked products are already seeing the benefit of the 125 basis points delivered since February 2025. On a Rs 50 lakh, 20-year loan, that translates to an EMI saving of around Rs 3,050 per month and a lifetime interest saving of Rs 7.34 lakh. On a Rs 75 lakh loan, the monthly saving is about Rs 5,800, with total interest savings of Rs 13.94 lakh. A rate hold keeps these gains intact. Borrowers still on MCLR-linked products are not seeing this benefit automatically and should switch to a repo-linked loan without delay. Those paying 50 basis points or more above current market rates should explore refinancing now.
