RBI raises repo rate by 0.25%, home loan can increase by Rs 321 every month EMI
Reserve Bank raises repo rate for second consecutive meeting
RBI has increased the repo rate by 0.25%. It has increased from 6.25% to 6.50%. As the repo rate increases, the risk of loan will be expensive all the way. The repo rate was increased by 0.25% in the previous review meeting which lasted four to six June. This is the first time since October 2013, when the repo rate has been increased in a second consecutive review meeting.
What is the repo rate
At which rate RBI lends to banks. Banks lend to customers with this loan. Increasing the repo rate increases the risk of loan becoming costlier. If the deduction is done, then the hope of loan becomes cheaper.