Repo rate in India is the rate at which the Reserve Bank of India lends money to other banks. The rate at which it lends clearly impacts the rate at which these banks further lend to consumers. Hence the repo rate directly impacts your home loan. You therefore need to have a clear understanding of what repo rate is all about. Further understanding the repo rate is also essential for you to get an understanding of India’s economy, as the lending rate influences all aspects of banking, impacting inflation and consumer spending too.