Urvashi Sibal, New Delhi: As Dr. Upasana Goswami listens to the heartbeat of her patient, her own heart is palpitating.

The doctor goes home everyday to play with her one year old son in a cramped one-room set in a doctors' hostel just so that she can afford her dream home – a spacious three bedroom apartment in Guwahati.

But with the RBI announcing a 25 basis point increase in repo rate, this anesthetist knows her own home loan rate is sure to go up too, sooner or later.

"We were planning to take another loan for our sons higher education but now the time for home loan payback will increase...so we can't take another loan," said Dr. Upasana.

So what does this mean for you? Lets say you have taken a loan of Rs 30 lakh at a floating rate of 9.5 per cent with a 20-year tenure. And interest rates increase by half a per cent. If your tenure can't increase, you are looking at a hike of nearly Rs 1,000 in the monthly EMI.

Floating Option (per month)

• Loan Amount – Rs 30,00,000
• Duration – 20 years
• EMI at 9.5% – Rs 27,963
• EMI at 10% – Rs 28,950
• Increase – Rs 987

"With growth in GDP projected, and the buoyant nature of the Indian economy, consumers can expect stronger interest rates," said Financial Markets, Institutions and Investment Management Group President Ajay Mahajan.

But it's not all grim. HDFC bank, which has the largest consumer base for home loans, and has already increased its interest rate by 2 per cent in the last one year, says it will try and make sure that the consumer does not feel the latest pinch.

"No immediate hike. Rates will remain stable for the next three months," said HDFC Limited Executive Director Renu Sud Karnad.

But Dr. Upasana, whose loan is from HDFC isn't stirred by this assurance. She knows the hike, whenever it comes, will eat into her budget.