New Delhi, Aug. 10 -- On 5 August, the Reserve Bank of India (RBI) kept the repo rate unchanged at 5.25%. The last rate cut came in December 2025, when the central bank reduced the repo rate by 25 basis points to 5.25%.

But does a stable repo rate mean your home loan EMI will remain unchanged in 2026? Not necessarily.

The impact depends on the benchmark linked to your loan. While newer floating-rate home loans are generally linked to an external benchmark such as the repo rate, some existing loans may still be linked to MCLR (Marginal Cost of Funds-based Lending Rate).

A repo-linked loan is tied directly to the RBI's policy rate. When the repo rate changes, the lending rate can change according to the loan's reset terms.

However, MCLR...