The Repo Rate is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks. Changes in the repo rate directly affect your loan EMIs (Equated Monthly Installments).
If you're paying off a loan (home, car, personal), even a 0.25% change in the repo rate can alter your monthly EMI significantly. Lower repo rates usually reduce EMIs, and rising rates increase your outgo.
Imagine you took a ₹10,00,000 home loan for 20 years at 7.5%. If the repo rate drops and your new rate is 6.5%, you could save over ₹1.44 lakh during the entire loan period! Our tool shows this instantly.
In recent times, repo rates have been reducing to boost economic growth and ease financial burdens post-pandemic. This move makes borrowing cheaper and fuels demand across sectors like real estate, auto, and MSMEs.
Understanding how repo rate changes affect your EMI helps you save smartly. Use this tool to make informed financial decisions, especially in today’s fluctuating economic conditions. A small percentage drop can mean big savings!
Q: Can I use this tool for car or education loans?
Yes, this tool works for any term loan with monthly EMIs.
Q: Do I need to adjust for processing fees or taxes?
No, this tool calculates pure EMI impact. Factor fees separately.
Q: Is this calculator accurate?
Yes, it's based on the standard EMI formula used across Indian banks.