New Delhi, Oct. 7 -- Home loan borrowers are likely to see their equated monthly instalments (EMIs) rise after the Reserve Bank of India (RBI) raised the repo rate by 25 basis points to 5.50 per cent on Wednesday, although real estate industry leaders expect the impact on housing demand to remain limited.

The rate hike could increase borrowing costs for homebuyers with floating-rate loans if banks transmit the full 25 basis point increase to their lending rates.

For instance, on a Rs 50 lakh home loan for 10 years at an interest rate of 8 per cent, the monthly EMI is around Rs 60,664. If the lending rate rises by 25 basis points to 8.25 per cent, the EMI would increase to around Rs 61,326, translating into an increase of about Rs 662 pe...