Home Loan EMI To Be Costly: In this festive season, you are going to get a shock of inflation. After food and fuel, your EMI is going to be expensive. Due to which the budget of your house is going to deteriorate. After the Monetary Policy Committee meeting, RBI has decided to increase the repo rate by 0.50 percent for the fourth consecutive time. Repo rate has been increased from 5.40 per cent to 5.90 per cent. After this decision of RBI, from government to private banks and housing finance companies will increase the interest rates of home loans, after which your EMI will become expensive. It is believed that from the current level, the home loan interest rates are expected to increase by 0.50 percent.
Effect of RBI raising repo rate
After the decision of RBI to increase the repo rate, banks will make loans expensive from housing finance companies. And the biggest brunt of expensive loans will have to be borne by those people who have bought their dream home by taking home loan from banks or housing finance companies. RBI has decided to increase the repo rate by 50 basis points, which now stands at 5.90 per cent. So the repo rate linked loans will become expensive. Let us tell how expensive your EMI will be.
20 lakh home loan
Suppose you had a home loan of Rs 20 lakh for 20 years, currently paying an EMI of 8.65 per cent at an interest rate of Rs 17,547. But after the increase of 50 basis points in the repo rate, the interest rate will be 9.15 percent, on which an EMI of Rs 18,188 will have to be paid. Your EMI will become expensive by Rs 641 and you will have to pay Rs 7,692 more EMI in the whole year.
home loan of Rs 30 lakh
If you have taken a home loan of Rs 30 lakh for 20 years, on which you are currently paying interest at the rate of 8.10 per cent, on which you have to pay an EMI of Rs 25,280 at present. But after increasing the repo rate, now you will have to pay interest at the rate of 8.60 percent. On which an EMI of Rs 26,225 will have to be paid. That is, every month Rs 945 more and in a year the burden of Rs 11,340 on your pocket is going to increase on the pocket.
50 lakh home loan
If you have taken a home loan of Rs 50 lakh for 15 years, on which at the rate of 8.60 percent interest, you have to pay an EMI of Rs 49,531 at present. But after making the loan expensive by RBI, your interest rate will increase to 9.10 percent on which EMI will have to be paid Rs 51,011. Now you will have to pay Rs 1480 more EMI every month and in a year you will have an additional burden of Rs 17,760 on your pocket.
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