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How the RBI rate hike could impact your home loan and investments

A bank FD you're planning to take could turn out more lucrative; but you could end up paying a higher EMI on your car or home loan

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BS Web Team New Delhi
The Reserve Bank of India (RBI) on Wednesday increased policy rates by 25 bps to 6.50 per cent, in the second consecutive rate hike by the central bank.

Any change in the repo rate impacts not only the economy, the banks sector and industry but also has a bearing on your finances. Here's how the latest hike in interest rate will impact your loans and investments.

Borrowings (loans) 

If you have borrowed money from the bank or are planning to do so in the future, the repo rate hike could be bad news for you. 

A hike in repo rate means that