If you’ve taken a home loan in India over the last few years, you’ve probably noticed your EMI statements creeping upward. That’s because interest rates have been rising steadily, and for borrowers, that means your cost of borrowing goes up too. While the repo rate hikes by the RBI are aimed at tackling inflation, they flow directly into how much you pay each month.

Why your EMI changes with rates

Most home loans in India are linked to floating rates, which move up or down depending on the RBI’s repo rate. When rates rise, your lender has two options—either increase your EMI or extend your loan tenure. Often, banks prefer to extend the tenure so the EMI doesn’t suddenly become unmanageable. But that also means you may end up paying interest for many more years.

The hidden long-term co

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