Key Factors Affecting Home Loan Rates, EMIs, and Credit Impact in 2026

Home loan borrowers in India should monitor interest rates, EMIs, and credit impacts in 2026. The Reserve Bank of India is expected to keep repo rates stable at 5.25%, with lenders offering home loan rates between 7.10% and 7.35%. Transmission delays in rate changes may affect EMI timing. Missing an EMI by over 30 days can lower credit scores by 50-150 points and incur penal interest charges of 2-4% monthly, increasing overall costs. Zero prepayment penalties from 2026 offer borrowers more flexibility.