# RBI rate hike: How higher rates will impact your EMIs, FDs and debt funds

**Published in Mint (LiveMint) & Mint Money**  
*By Shipra Singh · 8th–9th October 2026 · 8 min read*  

- **LiveMint Article:** [Read on LiveMint](https://www.livemint.com/money/personal-finance/rbi-rate-hike-loans-emi-deposits-fd-debt-funds-11791439312691.html)
- **Founder's POV on LinkedIn:** [Read Mangesh Zope's LinkedIn Note](https://www.linkedin.com/feed/update/urn:li:activity:7514174595835469824/)
- **Downloadable PDF:** [Download Mint Article PDF](/assets/pdfs/articles/rbi-rate-hike-how-higher-rates-will-impact-your-emis-fds-and-debt-funds-mint.pdf)

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## Founder's POV (From LinkedIn) — Mangesh Zope

> *"If the real estate is down, why is the government increasing the repo rate?"* — our customer's half-angry message (hopefully not angry at Peaceful-Loans).

Across the board there is a buzz on the Repo rate and its implications. Many customers who are high earners—for whom this doesn't change anything meaningfully in their day-to-day life—still feel the pinch. Rightly so: we strongly believe even **₹50 lakh+ income families** reserve the right to save every rupee possible.

Till last month, every customer of ours wanted the swiftest movement as the RBI changed the repo rate. Everybody expects only favourable results which help them save more.

Now that the Repo Rate has increased:
- **Slower-resetting banks look attractive:** Banks which react slower and less frequently—e.g., **ICICI Bank**, which resets rates once a quarter—now seem like an attractive proposition.
- **Hybrid rate lock-ins:** **Kotak Mahindra Bank's hybrid product** with a 5-year interest rate lock-in starting from **7.7%** is an undervalued product borrowers should consider, as rates are poised to trend higher from here.

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## Key Quotes & Insights from Mangesh Zope in Mint

> "I expect the increase to be passed on immediately for new customers. State Bank of India will announce its quarterly rate changes by 15 October and other major banks are likely to follow."  
> — **Mangesh Zope, Founder of Peaceful-Loans**

> "SBI’s loan agreement says rates linked to the EBLR (external benchmark linked rate) reset on the 15th of every month, while ICICI Bank resets rates once a quarter. NBFCs could pass on the increase faster as it’s a rate hike."  
> — **Mangesh Zope, Founder of Peaceful-Loans**

> As rates rise, Zope recommends increasing the EMI rather than extending the tenure if monthly cash flows permit.

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## When Rates Rise, Avoid Increasing Loan Tenure (₹50 Lakh Loan Example)

*Loan details: ₹50 lakh, 7.75% interest rate, 20 years left (Baseline total interest outgo: ₹48.51 lakh)*

| When interest is raised to 8% | If you raise EMI amount | If you extend tenure |
| :--- | :--- | :--- |
| **Monthly EMI** | ₹41,047 → ₹41,822 (+₹775/mo) | ₹41,047 (unchanged) |
| **Remaining tenure** | 20 years | ~20 years 11 months (+11 months) |
| **Total interest** | ~₹50.3 lakh | ~₹53.0 lakh |
| **Extra interest vs raising EMI** | Baseline optimal | **~₹2.7 lakh extra interest** |