Pay higher EMI or stretch EMI tenure: What should you do amid rising loan rates?

The Reserve Bank of India (RBI) on Wednesday increased the repo rate-the rate at which banks borrow from the Central Bank- by 0.35 percentage points to 6. 25 per cent in Monetary Policy Meeting concluded today.  Following the rate hike by the Central Bank,  the credit cost for both existing as well as fresh home loan borrowers will increase by 0.35 percentage points.