RBI Latest News: The Reserve Bank has maintained the repo rate at 5.5% in the August 2025 policy. This will not make the loan cheap, but EMI will not increase. In such a situation, those taking loans will now have to focus on other options. Learn how to find cheap loans …
Repo Rate Unchanged: The Reserve Bank of India (RBI) has kept the repo rate stable at 5.5% in its August 2025 Monetary Policy meeting. There has been no change in the repo rate for the second consecutive time, so that millions of people who are thinking of taking a loan may get a shock to the opposite. In such a situation, the question arises what to do now? Do you avoid taking a loan or adopt a plan B? In this article, know what is the meaning of RBI’s decision, what will be the effect on your EMI and if you are trying to take a loan then what options you see.
What is RBI’s decision on repo rate?
In its policy meeting on Wednesday, August 6, 2025, the RBI made it clear that no cuts will be cut at present. This is the second consecutive meeting after a reduction of 0.50% in June last time when the interest rate has been kept in place. The repo rate is the interest rate on which banks take loans from RBI. This directly affects the loan of the bank and your EMI.
Also read- RBI Mpc Meeting Decisions Today: Repo Rate is the same at 5.5%, know the impact on EMI
Will the loan EMI decrease or increase after RBI’s decision?
It is clear from the RBI’s decision that at present there will be no change in the interest rates of home loans, personal loans and auto loans. Those taking existing loans will not get any relief in EMI. Those taking new loans will get a loan at the same old interest rates, but the good thing is that there will be no increase in EMI.
What does RBI stance mean?
The RBI has kept the policy stance ‘neutral’ i.e. in the next meeting, it will take a decision by looking at the situation. If inflation increases, interest rates may increase. If growth falls, interest may be cut. Therefore, there is a possibility that RBI takes any new steps in the next meeting (October 2025).
Also read- RBI’s big gift: Now pre-paying will not be charged pre-payment charge! Know when from when?
If you want to take a loan then what to do now?
Compare Best Bank and NBFC
If you wanted to take a loan and were stopping in the hope of cutting interest rates, then you now need to adopt Plan B. The loan rates of all banks and financial companies are the same. The rates of some banks are still low. In such a situation, by compare, you will get information about low interest loans and you can get cheap loans.
Plan to transfer loan
If your loan is running at high interest rate, now the time has come for you to make a plan to transfer your loan to another bank or financial institution. This is called balance transfer, in which you can shift the loan at a low interest rate. This will cut your EMI and save on total interest payment. But before transfer, it is very important to read processing fees, documentation and new conditions carefully.
Focus on short term loan
If you feel that the interest rates will not go down more now, then taking a short term loan can be a better option in such an environment. While running a loan for a long time, more interest has to be paid, while the loans with short -term end quickly and the total cost of interest also decreases. For example, if you want a car or personal loan, then try to make a plan to repay it within 1-3 years. With this, you will also avoid the fluctuations of the interest rates of the future and will be able to get loan free quickly.
Budget plan with EMI calculator
Whether or not the interest rate changes, it is important to strengthen your financial planning. Whether there is no change in EMI, it is important to maintain a balance between your income, expenditure and saving. For this, use EMI calculator and find out in advance how much effect your monthly cash flow will be after a new loan or transfer. This will give you a chance to plan in advance and you will not feel overburdan.