With the Monetary Policy Committee (MPC) raising the repo rate by 35 basis points to 6.25 percent, home loan interest rates are set to rise. Since most banks' retail floating rate loans sanctioned after October 1, 2019 are linked to repo rate, they will pass on the entire hike to borrowers, prompting many to make part prepayments. Since 2012, borrowers have had it easy on this front, thanks to the Reserve Bank of India. Banks and housing finance companies cannot charge any prepayment penalty on retail floating-rate loans, making it easy to prepay or switch lenders. On fixed-rate loans, too, lenders do not levy penalties if repayment is out of own funds.