Know how much your home loan EMI will increase due to RBI’s decision
After the meeting of the Monetary Policy Committee, the Reserve Bank of India (RBI) has announced an increase in the repo rate by 0.50 percent, after which the repo rate will increase from 4.90 percent to 5.40 percent. After this decision of RBI, from the government to private banks and housing finance companies will increase the interest rates on home loans, 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 the interest rate on home loans from banks to housing finance companies was increased from 0.90 percent to 1.15 percent. Home loan EMI will now become expensive once again
Effect of hike in repo rate by RBI
After the RBI’s decision to increase the repo rate, banks will make the loans of housing finance companies more expensive and the biggest hit of expensive loans will be those who have bought homes in recent times by taking home loans from banks or housing finance companies. 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 after the 1.40 per cent hike in the repo rate.
20 lakh 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 the total increase 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 lakh 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, in the whole year, Rs 2965 more EMI and Rs 35,580 more EMI should be added.
50 lakh home loan
If you have taken a home loan of Rs 50 lakh for 20 years at an interest rate of 7.25 per cent, you are currently paying an EMI of Rs 39,519. But after the 1.40 per cent hike in the repo rate, the home loan interest rate will increase to 8.65 per cent, followed by an EMI of Rs 43,867. That is, an additional EMI of Rs 4348 per month will have to be paid and in a year there will be an additional burden of Rs 52,176 on your pocket.
Will the EMI be higher?
However, the RBI has increased the repo rate by 1.40 per cent in three tranches. It is believed that the way the prices of other commodities including crude oil are falling, after that the RBI will not have to make loans more expensive in future.