Mint Explainer | What RBI's rate hike means for retail borrowers and lenders

For retail borrowers whose floating-rate loans are linked to the repo rate, either monthly payouts will rise, or the tenure of their repayments will increase. Lenders will soon start passing on the revised interest rates.

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The Reserve Bank of India (RBI) on Wednesday hiked the repo rate by 25 basis points to 5.5%, its first hike in nearly four years, joining a host of global central banks building its defences against inflation risks.

About the Author

Shayan leads the coverage for banking and finance in Mint. Based in Mumbai, he has spent 15 years as a journalist, joining the Mint team in 2018. Over the years, he has tracked the Reserve Bank of India (RBI), commercial banks, and the complex world of shadow banking.<br><br>His expertise goes beyond just reporting news, and he specializes in explaining the "why" behind India’s financial shifts. Shayan has covered major milestones in the industry, including the rollout of the Insolvency and Bankruptcy Code (IBC), mergers in the banking and non-banking space, and the many challenges facing the country's credit markets. He has tracked cases of wrongdoings at India’s private sector banks and murky boardroom battles, trying to get behind the scenes.<br><br>Shayan is driven by a commitment to accuracy and clear, honest reporting. He believes in making finance easy to understand, ensuring his readers and investors stay informed about the forces shaping their money. When not at work, he tries to hone his amateurish photography skills, read fiction, and listen to music. You can follow his work and updates on LinkedIn and Twitter/X.

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