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    RBI Repo Rate Hike: RBI increased repo rate, know how much your home loan EMI will increase

    Shehnaz AliBy Updated:No Comments3 Mins Read
    New Delhi: RBI has increased the interest rates for the sixth time in a row. RBI has increased the repo rate by 25 basis points today i.e. after the monetary review meeting on February 8, 2023. The Reserve Bank of India today announced an increase in the repo rate. After this increase, the repo rate has reached 6.50 percent. Today is the last day of the Reserve Bank of India’s Monetary Review Meeting (RBI MPC) which began on Monday. Today is the last day of the meeting. Let us inform that earlier in the year 2022, RBI has increased the repo rate by 2.25 percent in five monetary policy meetings. After increasing the repo rate of RBI, from public-private banks to housing finance companies will increase the interest rates of home loans. After this, now people’s home loan EMI (EMI) will become expensive. Let us tell you how much your home loan will be affected. How much EMI do you have to pay now?

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    Know how much your EMI will increase

    Consider how expensive your home loan EMI will become if someone has taken a home loan of Rs 20 lakh at 8.60 per cent interest rate for 20 years. So he is paying an EMI of Rs 21,854 every month for his home loan. Now after the increase of 25 basis points in the repo rate, the interest rate will increase to 8.85 percent. In such a situation, he will have to pay an EMI of Rs 22,253 instead of Rs 21,854. If seen in this way, his EMI will become costlier by around Rs.400. On the other hand, if someone has taken a home loan of Rs 40 lakh at 8.60 per cent interest rate for 20 years, then he will have to pay an EMI of Rs 34,967 every month. Now after increasing the repo rate, he will have to pay 8.85 percent interest on the home loan. In this case, his EMI will increase to Rs 35,604. Accordingly, the EMI will increase by Rs 637. See in the chart how much you will have to pay now as compared to earlier.

    home loan amount Interest Rate (in %) period (years) Current Installment (in Rs.) Installment at new interest rate
    2 million 8.60 20 21,854 22,253
    40 lakhs 8.60 20 34,967 35,604
    50 lakhs 8.60 15 49,531 50,268

    RBI has increased the repo rate for the sixth time in a row

    RBI has increased the repo rate for the sixth consecutive time this time. Prior to this, RBI has increased the repo rate 5 times. In one year, RBI had increased the total by 225 basis points. RBI last increased it by 0.35 percent in December 2022. It was increased to 6.24 per cent. The common man has suffered the most due to the increase in the repo rate. The burden on the common man’s pocket has increased.

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    EMI will increase but they will benefit

    After the increase in repo rate by RBI, the burden of inflation will increase on the common man, but due to this people will get more interest on FD deposited in banks. The main reason for the increase in repo rate by RBI is to control inflation. RBI wants to reduce the cash from the market, so that inflation can be controlled.

    Source: navbharattimes.indiatimes.com

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    Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.

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