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RBI holds repo at 6.0% — what it means for home-loan EMIs

The MPC kept the repo rate unchanged at 6.0% in its April 2026 review. RLLR-linked home loans stay put; borrowers eyeing a cut will likely wait until June.

Rate change3 min read🇮🇳India

The Reserve Bank of India's Monetary Policy Committee voted 5-1 to keep the repo rate at 6.0% on April 9, 2026. Governor Sanjay Malhotra cited sticky core inflation near 4.3% and uneven monsoon forecasts as reasons for the pause after two back-to-back cuts earlier this cycle.

What changes for you

If your home loan is linked to the Repo-Linked Lending Rate (RLLR), your interest rate and EMI stay exactly where they are this quarter. MCLR-linked borrowers won't see any rate action at the next reset either — MCLR tracks cost-of-funds, not the repo, and deposit rates are already flat.

For a ₹50 lakh home loan at 8.75% over 20 years, the EMI is ₹44,186. A 25-basis-point cut would have dropped it to ₹43,384 — a saving of ₹802/month, or ₹1.92 lakh over the full tenure. That saving is now deferred, probably to the June MPC, where the market is pricing a 60% chance of a 25bp cut.

Fixed deposit savers

FD rates stay attractive. SBI's 1-3 year special remains at 7.10% for senior citizens; small finance banks are still offering 8.25%+. Lock in long tenures now if you expect the cut cycle to resume.

Auto and personal loan borrowers

These are mostly fixed-rate products. The repo pause doesn't change your EMI — but if you're shopping for a new loan, the window to negotiate a lower rate is narrower than it was in January.

What the RBI said about liquidity

System liquidity swung to a mild deficit in late March after advance-tax outflows. The RBI committed to variable-rate repo auctions to smooth the transition. Bond yields barely moved — the 10-year closed at 6.78%.

Bottom line

If you were waiting to prepay or refinance, there's no urgency this week. Recalculate your EMI in our home-loan tool if your reset is approaching, and revisit after the June 6 MPC decision.

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