RBI Holds Rate at 5.25%: Your SBI, HDFC, PNB EMI Stays Same in April 2026
Live Updated: April 8, 2026, 4:46 PM IST
The Reserve Bank of India has kept its key lending rate unchanged at 5.25 percent after the April 6-8 MPC meeting. Home loan borrowers at SBI, HDFC Bank, and PNB will see no change in their monthly EMIs.
The RBI Monetary Policy Committee voted unanimously to hold the repo rate at 5.25 percent after its three-day meeting concluded on April 8, 2026, under the chairmanship of Governor Sanjay Malhotra. This is the second back-to-back meeting where rates have been held steady, giving millions of loan borrowers across India a direct signal: your EMI amount is not going up this month.
What the RBI Decided and Why
The MPC maintained a neutral stance. GDP growth for 2026-27 is projected at 6.9 percent, while CPI inflation is forecast at 4.6 percent for the full year. The central bank is watching global risks closely.
The ongoing conflict in West Asia has sent shockwaves through energy markets, pushing Brent crude prices above 100 dollars per barrel. As a major importer of crude oil, India is particularly exposed to such price shocks, which directly affect the country’s import bill and domestic inflation.
RBI Governor Sanjay Malhotra flagged emerging inflation risks linked to geopolitical tensions, noting that the ongoing West Asia conflict, especially between Israel and Iran, could disrupt supply chains and weigh on economic growth. This is why the RBI chose to pause rather than cut or raise rates. It wants to wait and see how global prices move before taking any fresh action.
You can read more about how this decision was expected on our earlier coverage of the RBI repo rate decision on April 8.
What This Means for Your Home Loan EMI
For borrowers, the immediate implication is clear: lending rates linked to the repo rate are unlikely to rise in the short term. This ensures that the benefits of earlier rate cuts continue to flow through to EMIs, preserving affordability for both existing and new home loan customers.
On a ₹50 lakh, 20-year home loan, that translates to an EMI saving of around ₹3,050 per month and a lifetime interest saving of ₹7.34 lakh compared to rates before the 2025 cuts. On a ₹75 lakh loan, the monthly saving is approximately ₹5,800, with total interest savings of ₹13.94 lakh. These savings were delivered through the 125 basis points of rate cuts that the RBI made through 2025. Today’s hold means those gains are locked in for now.
Most bank loans in India are linked to the repo rate. When the repo rate goes up, loan interest rates also increase. For instance, if a home loan of ₹50 lakh is taken at an 8 percent interest rate for 20 years, a rise to 9 percent would increase the monthly EMI by approximately ₹3,164, from ₹41,822 to ₹44,986. Since the rate is not moving, borrowers are protected from that jump.
Current home loan rates at major banks after today’s decision are as follows. SBI: 7.50 percent to 8.45 percent. HDFC Bank: starting from 7.90 percent. PNB: starting from 7.55 percent. These rates are not changing because the repo rate is not changing.
For a detailed breakdown of what new money rules mean for your take-home salary this year, check our article on new income tax act changes.
What Happens to FD Rates and Savings
The repo rate is the interest rate at which the RBI lends money to commercial banks. It serves as a key tool for the RBI to manage inflation and liquidity in the economy. When this rate holds steady, deposit rates at banks also tend to stay flat.
Fixed deposit (FD) investors should not expect their bank to raise FD rates in the near term. If you are planning to lock in an FD, current rates may not improve soon. For better returns, you may want to compare options like the Post Office Monthly Income Scheme, which we have covered in detail in our Post Office savings interest rate guide.
The official policy announcement from the Reserve Bank of India can be tracked directly on rbi.org.in, where Governor Malhotra’s full speech and MPC minutes are published.
You Need to Know
The RBI MPC voted unanimously to keep the repo rate at 5.25 percent on April 8, 2026, with a neutral stance. Home loan EMIs at SBI, HDFC Bank, PNB, and all other repo-linked lenders will not change in April. Borrowers on ₹50 lakh, 20-year loans are already saving ₹3,050 every month from last year’s rate cuts, and that saving continues.
The standing deposit facility rate stays at 5.00 percent, and the marginal standing facility rate and Bank Rate remain at 5.50 percent. CPI inflation for 2026-27 is projected at 4.6 percent, and GDP growth is forecast at 6.9 percent. FD rates at major banks are unlikely to go up or down in the short term.
What Happens Next
Experts believe rate hikes could happen in the coming months if inflation rises further due to high oil prices. The next MPC meeting is expected in June 2026. Between now and then, the RBI will watch crude oil prices, the West Asia situation, the Indian rupee, and domestic inflation data closely.
If oil prices stay above 100 dollars per barrel and inflation starts rising beyond 4.6 percent, the RBI may be forced to act. If the global situation calms down and inflation stays low, a rate cut later in the year remains a possibility.
For home loan borrowers, the advice is simple: if you are on a floating rate loan linked to the repo rate, your EMI is safe for now. Review your loan terms and speak to your bank if you have not yet moved to a repo-linked loan, as you may still be on MCLR which could be costing you more. You can also read our earlier prediction piece on the RBI MPC April meeting and EMI outlook for more background.
Read Next:
- Stay updated on whether your 8th Pay Commission arrears will be affected by reading our report on DA hike and salary arrears in April 2026
- Find out how money rules changing from April 1 could affect your taxes and bank account
- Check if your bank branch is open this month with our bank holidays April 2026 state-wise list
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Loan interest rates vary by bank, borrower profile, and credit score. Please consult your bank or a certified financial adviser before making any loan or investment decisions.
