RBI Updates
Important highlights
- Floating-rate loans are linked to an external benchmark such as the repo rate.
- A rate change affects EMI or tenure depending on your lender.
- Use an EMI calculator to see the effect of a change.
The link to your EMI
When the benchmark changes, lenders reset the rate on floating loans after the reset period in your agreement. Either your EMI or your loan tenure changes.
What to check
Ask your lender how and when resets apply, and whether you can switch to a different rate or part-prepay without penalty.
Official notification / source: Reserve Bank of India
Editorial summary for awareness. Check the official source before acting.