India RBI Keeps Repo Rate Steady, Home Loan Rates Hold

The Reserve Bank of India (RBI) left its repo rate unchanged at 5.25%, signalling a neutral monetary stance. Because the cost of funds for banks remains stable, existing and prospective borrowers are not expected to see higher home loan EMIs in the near term.

Government‑run banks are offering competitive home loan rates: State Bank of India (SBI) 7.25%‑9.05%, Bank of Baroda 7.20%‑9.25%, Central Bank of India and Bank of India around 7.10%, Union Bank of India 7.15%, and Karnataka Bank 7.25%. Private lenders such as ICICI Bank (7.50%), Kotak Mahindra Bank (7.60%), HDFC Bank (7.75%) and Axis Bank (8%‑11.90% depending on profile) also remain in the market. Experts note borrowers should also weigh processing fees, pre‑payment penalties, loan tenure and credit scores when choosing a loan.