RBI keeps repo rate unchanged at 6.5%: How it affects your loan EMIs

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The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5%, marking the 11th consecutive meeting where the key lending rate has remained the same. The move comes as the central bank grapples with persistent inflation pressures and an uncertain economic growth outlook.


RBI Governor Shaktikanta Das made the announcement on December 6, with the decision arriving from a 4:2 split within the Monetary Policy Committee (MPC). The last hike happened in February 2023.

Impact on different types of loans

The RBI's move to hold the repo rate steady has various implications for borrowers:

Home loans:

Interest rates on home loans pegged to the repo rate will remain unchanged. Equal monthly instalments (EMIs) for existing home loan borrowers won't see any change.

Auto loans:

Borrowers with auto loans tied to the repo rate can also expect their EMIs to stay the same, with no adjustment in interest rates.

Personal loans:

For individuals holding personal loans linked to the repo rate, the RBI's decision means their EMIs will remain steady.

New borrowers:

Those considering new loans should be prepared for interest rates to stay in line with current levels. This stability could benefit potential borrowers who are assessing the cost of financing.


With the repo rate unchanged at 6.5%, there is no immediate impact on existing borrowers' EMIs or new loans. This move provides predictability for borrowers while keeping monetary policy supportive of economic recovery.

What RBI Governor Shaktikanta Das said

In his announcement, RBI Governor Shaktikanta Das explained that the decision to maintain the rate was driven by ongoing concerns about inflation, particularly food inflation, which has yet to show signs of stabilising.


Governor Das also pointed out that despite these inflation concerns, there is a reason for cautious optimism about India's economic growth. The positive impact of favourable monsoon seasons and the anticipated resurgence in capital expenditure are expected to support economic expansion, providing a counterbalance to the risks posed by high inflation, according to a report in the Economic Times.


The RBI's stance has shifted from the ‘withdrawal of accommodation' policy seen earlier to a more ‘neutral' approach.This change indicates a cautious pause, rather than an aggressive pivot toward easing rates.