RBI rate hike to make home, car loans costlier

What happened: The RBI monetary policy committee voted unanimously to raise rates and adopted a "calibrated tightening" stance. Governor Sanjay Malhotra said rate cuts are off the table for now. Key numbers: External benchmark-linked loans were 68.2% of banks' outstanding floating-rate rupee loans at end-June; MCLR-linked loans were 29.6%. SBI advertises home loans from 7.25% a year. Why it matters: Repo-linked home, car and personal loans may cost more at their next reset, which banks must do at least every three months. Fixed-rate loans will not be repriced by this decision.

RBI rate hike directly raises borrowing costs for home and car loans.

RBI rate hike directly raises borrowing costs for home and car loans. — impact context not separately stored; see What changed.