The Reserve Bank of India (RBI) announced its latest monetary policy on April 8. As expected, there was no change in the repo rate, which remains at 5.25%.
Experts had already predicted that the central bank would keep rates unchanged this time. The last rate cut happened in December 2025, while no changes were made in February either.
No Immediate Relief in EMIs
If you are waiting for your home loan or car loan EMI to go down, you may have to wait a bit longer.
Since the repo rate has not been reduced, banks are unlikely to lower interest rates right now. This means EMIs will stay the same for the time being.
However, there is some positive news. Since February last year, the RBI has already reduced the repo rate by 1.25%. This has already helped many borrowers lower their EMIs or shorten their loan tenure.
Why RBI Is Not Cutting Rates Now
According to experts, global factors are playing a big role in this decision.
The ongoing conflict in the Middle East is increasing the risk of inflation. Rising crude oil prices can push up transportation costs, which may lead to higher prices for many goods.
Sanjay Malhotra, the RBI Governor, also highlighted that high crude prices could become a major concern if they remain elevated for a long time.
When Can Interest Rates Go Down?
There is still hope for borrowers.
Experts believe that if inflation remains under control and global tensions ease, the RBI may reduce the repo rate by 0.25% in the second half of this financial year.
However, the central bank will act carefully and only cut rates when there is no strong risk of rising inflation.
What Should Loan Buyers Do Now?
If you are planning to take a home loan or car loan, experts suggest not waiting too long.
You can consider taking a loan at a floating interest rate. This type of loan has a key advantage—whenever the repo rate is reduced in the future, your interest rate and EMI will automatically decrease.
This benefit is not available with fixed-rate loans.
Borrowers Already Got Some Relief
The earlier rate cuts have already helped many customers.
For example, on a loan of ₹50 lakh at an interest rate of 8.50%, the EMI has reduced by around ₹3,057 per month after the 1.25% total rate cut.
Some borrowers also chose to keep their EMI the same but reduced their loan tenure instead, helping them repay their loans faster.
