Home Loan: How much will your home loan EMI change following the RBI's announcement? Understand the full calculation for a ₹50 lakh loan.

If you have taken a home loan to buy your dream home or are planning to purchase a new one, today is a crucial day for you. The decisions from the June meeting of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) were announced today, June 5, 2026.

At 10:00 AM, RBI Governor Sanjay Malhotra informed the nation that there has been no change to the repo rate this time either; it has been maintained at its existing level. This means the repo rate in the country currently remains at 5.25%. You might be wondering how this decision will impact your finances and your home loan EMI. Let us understand, in simple terms, how the EMI for a ₹50 lakh home loan would be calculated now.

What is the repo rate?
The repo rate is the rate at which the RBI lends money to commercial banks (such as SBI, HDFC, and PNB). When the repo rate rises, funds become costlier for banks, leading them to increase interest rates on home loans and car loans. When the rate remains stable, your EMI also remains unchanged.

Since the central bank (RBI) has kept the repo rate unchanged, there will be no immediate alteration to your existing home loan EMI. This is welcome news for borrowers, as the risk of rising interest rates in the market has been averted for the time being.

EMI calculation for a ₹50 lakh home loan
Let us understand this with an example: if you have taken a home loan of ₹50 lakh for a tenure of 20 years, here is what your monthly EMI would look like at different interest rates:

If the interest rate is 8.50%, the monthly EMI would be approximately ₹43,391. Over the 20 years, the total interest payable would amount to roughly ₹54.13 lakh. Now, if you have taken a loan at an interest rate of 9.00%, you would need to pay approximately ₹44,986 per month, and the total interest payable over 20 years would amount to around ₹57.96 lakh. Essentially, while the difference in monthly EMIs between two interest rates might be marginal, the difference in the total interest paid runs into lakhs.

What do experts advise?
Financial experts suggest that even though the RBI has not cut rates this time, if you have a good CIBIL score, you can negotiate with your current bank to lower your interest rate. Additionally, you always have the option of transferring your home loan to another bank (Home Loan Balance Transfer) if you can secure a better and more affordable deal there.

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