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|
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.
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.
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