How to reduce home loan burden after repo rate hike

What happened: The Reserve Bank of India's Monetary Policy Committee raised the repo rate by 25 basis points on 7 October, from 5.25% to 5.5%, and shifted its stance from neutral to calibrated tightening. Key numbers: Repo rate up 25 bps to 5.5%. 68.2% of floating-rate loans are externally benchmarked. Expected further hikes of 50-75 bps. Why it matters: Borrowers with repo-linked floating-rate loans face higher rates, and analysts expect cumulative hikes of another 50-75 bps. Bank of India has already announced a 25 bps home loan rate hike, with other banks expected to follow.

The Reserve Bank of India's Monetary Policy Committee raised the repo rate by 25 basis points on 7 October, from 5.25% to 5.5%, and shifted its stance from neutral to calibrated tightening.

Borrowers with repo-linked floating-rate loans face higher rates, and analysts expect cumulative hikes of another 50-75 bps. Bank of India has already announced a 25 bps home loan rate hike, with other banks expected to follow.