What did the RBI decide in October 2026?
On 7 October 2026 the RBI's Monetary Policy Committee raised the repo rate by 25 basis points, from 5.25% to 5.50%, and moved to a stance of calibrated tightening. Loans linked to the repo rate, including most new home and plot loans, typically reprice upward by about the same 0.25%. The next policy meeting is on 2 to 4 December 2026.
How much does a 0.25% rise add to a plot loan EMI?
Example: a ₹63 lakh plot at Godrej Rivershore Estate with a loan of about 75% (₹47 lakh). Rates are illustrative; plot loans are usually priced above home loans, so check your bank's offer.
| Loan ₹47 L | EMI at 9.00% | EMI at 9.25% | Extra per month | Extra interest over the loan |
|---|---|---|---|---|
| 15 years | ₹47,671 | ₹48,372 | ₹701 | about ₹1.26 L |
| 20 years | ₹42,287 | ₹43,046 | ₹759 | about ₹1.82 L |
Does a staged payment plan help?
Yes. Godrej Rivershore Estate is paid in five instalments of 20% from booking to possession, so a bank disburses the loan in stages. You pay interest only on the amount disbursed so far, which softens the effect of a rate rise in the early years compared with a one-time disbursal.
What can borrowers do now?
- Ask your bank whether your loan is linked to the repo rate (EBLR) and when it resets.
- Compare offers: the spread over the repo rate differs between banks and is negotiable for good credit scores.
- Choose between a higher EMI and a longer tenure; a longer tenure costs more interest over time.
- Prepay when you can: even one extra EMI a year shortens the loan noticeably.
- Keep a buffer: the RBI signalled that near-term rate cuts are unlikely.
Should I delay buying because of the rate hike?
A 0.25% rise adds about ₹700 to ₹760 a month on a ₹47 lakh loan. For most buyers the choice of plot, price and payment plan matters more than this change. Rates can move again either way, so plan for a range rather than a single number. Plot loan guide.
General information, not financial advice. Confirm rates and terms with your lender.
Frequently asked questions
What is the RBI repo rate in October 2026?
5.50%, after the Monetary Policy Committee raised it by 25 basis points from 5.25% on 7 October 2026.
How much will my plot loan EMI increase after the rate hike?
On a ₹47 lakh loan, a 0.25% rise adds about ₹701 a month over 15 years or ₹759 a month over 20 years, if your loan reprices by the full amount.
When is the next RBI policy meeting?
2 to 4 December 2026.
Does a staged payment plan reduce the impact of a rate hike?
It helps: with five 20% instalments, the loan is disbursed in stages, so you pay interest only on the amount drawn so far.