Money & RulesBreakout Explainer
RBI hiked the repo rate: which lenders have raised FD rates, and how much more your EMI costs
On 7 October, RBI raised the repo rate by 25 basis points to 5.50% and moved its stance to "calibrated tightening". Floating-rate borrowers pay more at their next reset. Depositors are waiting for FD hikes, and so far only a few lenders have moved with dated, public revisions. Here's who, plus a calculator for your EMI.
TL;DRThe short version
- The hike: RBI's MPC voted unanimously on 7 October to raise the repo rate by 25 bps, from 5.25% to 5.50%. The stance changed from neutral to "calibrated tightening". The next meeting is 2–4 December.
- Your EMI: on a ₹30 lakh, 20-year loan at 8%, a full 0.25% pass-through adds about ₹469 a month (₹25,093 → ₹25,562). If your bank keeps the EMI the same instead, you pay about 12 more months.
- FD rates: dated revisions so far are Bajaj Finance (+15–40 bps from 7 Oct, top 7.75%), ICICI Bank (revised from 9 Oct, top 6.50%) and Shriram Finance (+15–40 bps from 11 Oct, top 7.85%).
- Read RBI's official Monetary Policy Statement (7 October 2026): rbi.org.in · Press release 2026-2027/1264Work out your own new EMI, and see the latest FD revisions, in our EMI calculator and FD tracker.
Key facts
- Repo rate
- 5.50% (+25 bps), from 7 Oct 2026
- SDF / MSF
- 5.25% / 5.75% (Bank Rate 5.75%)
- Stance
- Calibrated tightening (was neutral)
- Vote
- Unanimous, 6–0
- Projections 2026-27
- CPI inflation 5.2%; real GDP growth 7.1%
- Next MPC
- 2–4 December 2026; minutes due 21 October
Short answer: borrowers with repo-linked floating loans will pay more at their next rate reset. Depositors may get better FD rates, but so far only a handful of lenders have announced dated revisions. Most big banks hadn't moved as of 9 October.
What RBI did on 7 October
The Monetary Policy Committee voted 6–0 to raise the policy repo rate by 25 basis points to 5.50%. The standing deposit facility rate moved to 5.25%, and the marginal standing facility rate and Bank Rate to 5.75%. It also changed its stance to "calibrated tightening". RBI cited the re-escalation of the West Asia conflict, volatile crude prices, and CPI inflation rising to 4.8% in August. Headline inflation is now expected to average almost 5.8% over the next three quarters. RBI still projects growth of 7.1% for 2026-27.
What it does to your EMI
If your loan is linked to an external benchmark such as repo, your bank passes the change on at your next reset date. RBI rules require these loans to reset at least once every three months. Examples for a full 0.25% pass-through:
| Loan | Rate now → after | EMI now → after | Extra per month |
|---|---|---|---|
| ₹30 lakh home loan, 20 years | 8.00% → 8.25% | ₹25,093 → ₹25,562 | ₹469 |
| ₹50 lakh home loan, 20 years | 8.50% → 8.75% | ₹43,391 → ₹44,186 | ₹795 |
| ₹10 lakh car loan, 5 years | 9.00% → 9.25% | ₹20,758 → ₹20,880 | ₹122 |
Many banks don't change your EMI at all. They extend the tenure instead: in the first example, from 240 to about 252 months. Fixed-rate car and personal loans you already have don't change. Calculate yours →
Who has raised FD rates (dated revisions only)
| Lender | Effective | Change | Top regular rate |
|---|---|---|---|
| Bajaj Finance (NBFC) | 7 Oct | +15 to +40 bps | 7.75% (31–60 months); seniors 8.15% |
| ICICI Bank | 9 Oct | Revised (bank didn't publish the change) | 6.50% (3–10 years); seniors 7.10% |
| Shriram Finance (NBFC) | 11 Oct | +15 to +40 bps | 7.85% (36–60 months); seniors +0.50% |
In BankBazaar's compilation of 9 October, most other banks, including SBI and HDFC Bank, still showed rates dated before the hike. That's why we haven't listed them. NBFC deposits pay more but have no DICGC insurance, which covers bank deposits only.
Should you lock in an FD now?
RBI's new stance means rate cuts are off the table for now, and further hikes are possible. If you expect banks to keep raising rates, a shorter FD or a ladder (spreading money across tenures) keeps your options open. If you value certainty, the NBFC rates above are among the highest, at a higher risk. We'll add banks to the FD tracker as they publish dated revisions.
Trend Monitor
Faded fast, but a second spike is likely. "repo rate" jumped from 1–4 to 32 on 7 October, then fell back to 3. "fd rates" ran higher than usual (peak 52) and is now back near baseline (27). Each bank's FD announcement should bring searches back.
- india post fd rates october 2026+113,400%
- rbi repo rate hike+79,550%
- rbi mpc impact on sbi deposits+24,750%
- rbi repo rate fixed deposit impact+13,500%
- repo rate (7-day trend)1 → 32 (7 Oct) → 3, faded
Google Trends, India, rising queries, 30 days