Home Loan EMI To Cost More: RBI hikes loan rates for the third time in a row, know how expensive home loan EMI will be!

Home EMI will be expensive: After the meeting of the Monetary Policy Committee, RBI has announced an increase of 0.50 percent in the repo rate, after which the repo rate will increase from 4.90 percent to 5.40 percent. After this decision of RBI, from government to private banks and housing finance companies will increase the […]
 


Home Loan EMI To Cost More: RBI hikes loan rates for the third time in a row, know how expensive home loan EMI will be!

Home EMI will be expensive: After the meeting of the Monetary Policy Committee, RBI has announced an increase of 0.50 percent in the repo rate, after which the repo rate will increase from 4.90 percent to 5.40 percent. After this decision of RBI, from government to private banks and housing finance companies will increase the interest rates of home loan, after which your EMI will become expensive. Even before this, on May 4 and June 8, 2022, the RBI had increased the repo rate by a total of 90 basis points, after which banks and housing finance companies increased the interest rates on home loans from 0.90 per cent to 1.15 per cent. Home loan EMI will now become expensive once again

RBI Effect of hike in repo rate by

After the decision of RBI to increase the repo rate, banks will make the loans of housing finance companies more expensive. And those who have recently bought a home by taking home loans from banks or housing finance companies will have to bear the brunt of the higher cost of the loan. RBI has decided to increase the repo rate by 50 basis points, which is now 5.40 per cent. But in the last three months, the RBI has made loans costlier by 1.40 per cent. Let us see how much your home loan EMI will cost in three months post the repo rate hike of 1.40 per cent.

20 lac home loan

 

Suppose you have taken a home loan of Rs 20 lakh for 20 years at an interest rate of 6.85 per cent, then you will have to pay an EMI of Rs 15,326. But after three hikes of a total of 1.40 basis points in the repo rate, the home loan interest rate will increase to 8.25 per cent, after which you will have to pay an EMI of Rs 17,041. That is, in three months, the EMI will be Rs 1715 more. There will be an additional burden of Rs 20,580 on your pocket in a year.

40 lac home loan

If you have taken a home loan of Rs 40 lakh for 15 years at an interest rate of 6.95 per cent, you will currently have to pay an EMI of Rs 35,841. But after the 1.40 percent increase in the repo rate, the interest rate will increase to 8.35 percent, after which you will have to pay an EMI of Rs 38,806. That is, every month Rs 2965 more EMI has to be paid. And 35,580 more EMI will have to be paid if added over the whole year.