What happened
Banks have started raising lending rates after the RBI's repo-rate increase, with SBI among the first large lenders to act. The repo rate is the rate at which the RBI lends to commercial banks, so when it rises, banks' funding costs rise too.
Why this matters
Repricing is not automatic for every loan. Floating-rate home loans linked to the RBI repo rate (the external benchmark method introduced by the RBI) usually adjust at the next reset date. Fixed-rate loans and older MCLR-linked loans may adjust more slowly or not at all. The gap between those categories is where borrowers lose money without noticing.
Action plan
Pull your loan statement and check the benchmark: EBLR/repo-linked, MCLR, or fixed.
Note your reset date and the spread your bank charges over the benchmark.
If you are close to a reset, compare the spread with what other banks offer for balance-transfer loans. Processing fees and prepayment charges matter here.
If you have spare cash, consider part-prepaying the loan with the highest rate first.
Keep your EMI untouched for now unless your cash flow is tight.
Bottom line
A quarter-point change on a ₹50 lakh, 20-year loan moves the EMI by roughly ₹700 a month. Small in isolation, meaningful over decades. Read the benchmark and spread on your loan, not just the headline rate.