Home Loan Interest Rates: Will EMIs Get Cheaper Or Expensive After RBI Policy On June 5? Top Home Loan Rates

The RBI's policy outcomes on June 5th come at a very challenging time, as the rupee has taken a worse hit, and the energy crisis has heightened inflationary woes due to the Middle East conflict. But any RBI decision related tothe policy repo rate will also play a major role in setting the tone for home loan interest rates offered by banks.

RBI Repo Rate & Home Loan EMIs Link:

The repo rate has a direct impact on floating home loan rates, while it has an indirect impact on fixed home loan rates.

In the case of floating rates, the majority of banks have linked their home loan interest rates with external benchmarks like the repo rate. Hence, any rise or fall in repo rate will have a direct impact on home loan floating interest rates. Meanwhile, in the case of a fixed rate, the changes in the repo rate will be felt when home loans are refinanced.

At present, RBI's policy repo rate is at 5.25%, while the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) stood at 5% and 5.50%. Further, bank rate stood at 5.50%.

What Will Be RBI's Decision On June 5, 2026?

"Global uncertainties, monsoon uncertainties (given super El Niño), crude oil surge, sliding rupee and the impact all of it can have on inflation would be playing heavily on the RBI's mind as they go into the MPC meeting later this week. However, holding on to the current repo rate of 5.25% would be crucial not only to boost confidence but, more importantly, to signal the strength of the Indian economy," said Tanuj Shori, Founder & CEO, Square Yards.

Adding, Shori said, the residential real estate market has shown remarkable resilience, driven by strong end-user demand, rising household incomes, and a growing preference for homeownership. The cumulative rate cuts over the past year have already improved affordability and borrowing conditions. The focus should now shift to ensuring these benefits reach homebuyers effectively.

Looking ahead, he added, policy measures that balance growth and inflation while supporting liquidity in the financial system will help sustain housing demand in key markets. For prospective homebuyers, predictability of interest rates is a crucial factor in their purchasing decisions, and continued macroeconomic stability will further enhance confidence in the sector."

SBI Home Loan Interest Rates

Currently, SBI is offering 7.25% to 8.55% rates on normal home loans, while the interest rates rise to 7.75% to 9.05% on Home Loan Maxgain (OD). Further, SBI is offering 7.75% to 10.50% rates on top-up home loans and 8.25% to 11% on top-up (OD) home loans. The rates are 8.95% to 10.50% on loan against property. While SBI levies a 10.30% rate on reverse mortgage loans and 8.10% on home loan top-up through YONO Insta.

HDFC Bank Home Loan Interest Rates:

The largest bank in India is charging 7.75% to 13.20% rates on all type of home loans to salaried and self-employed individuals.

ICICI Bank Home Loan Interest Rates:

On home loans up to Rs 35 lakh, ICICI Bank is charging 8.50% to 9.40% to salaried individuals and 8.50% - 9.55% to self-employed. Further, on home loans between Rs 35 lakh to Rs 75 lakh, the interest rates are 8.50% - 9.55% to salaried individuals and 8.50% - 9.70% to self-employed borrowers. Lastly, the rate is 8.50% - 9.65% for salaried individuals and 8.50% - 9.80% to self-employed if they borrow above RS 75 lakh.

Calculate Home Loan EMIs:

P x R x (1+R)^N / [(1+R)^N-1]

P = Principal loan amount

N = Loan tenure in months

R = Monthly interest rate

The rate of interest (R) on your loan is calculated per month.

R = Annual Rate of interest/12/100

For example: If a person avails a loan of Rs 10,00,000 at an annual interest rate of 7.2% for a tenure of 120 months (10 years), then his EMI will be calculated as under:

EMI= Rs 10,00,000 * 0.006 * (1 + 0.006)120 / ((1 + 0.006)120 - 1) = Rs 11,714.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.