The repo rate (Repurchase Rate) is the RBI’s primary monetary policy tool. When the RBI lends money to banks overnight against government securities, it charges the repo rate. Changes directly affect lending rates across the economy.
Since Oct 2019, all new floating-rate retail loans from banks must link to an external benchmark, with repo being the most common. The RBI’s Monetary Policy Committee reviews rates six times annually. Rate transmission (from RBI to borrowers) occurs within 1-3 months. Tracking repo rate trends helps borrowers time loan decisions.
The repo rate directly drives most floating-rate loan costs in India. Following RBI policy decisions helps borrowers anticipate EMI changes and time applications strategically.
Nihal Fintech tracks RBI monetary policy closely, proactively informing clients about repo rate impacts on existing and prospective loans.
Monthly EMI: --
Total Interest Payable: --
Total Payment (Principal + Interest): --
