Home Loan EMI Calculator: Once in the new year, the EMI of your home loan has become expensive. Announcing the first monetary policy of 2023, the RBI has increased the repo rate by a quarter of a percent while making changes in the policy rates. The repo rate has been increased from 6.25 percent to 6.50 percent. Earlier, RBI has increased the repo rate by 2.25 percent in five monetary policy meetings in 2022.
Effect of increasing the repo rate of RBI
After increasing the repo rate of RBI, from public-private banks to housing finance companies will increase the interest rates of home loans, after which your EMI will become expensive. Let us tell you how expensive your EMI will become.
How much did the EMI increase on a home loan of Rs 20 lakh?
Suppose the country’s largest bank SBI had to pay an EMI of Rs 21,854 for a home loan of Rs 25 lakh for 20 years at an interest rate of 8.60 per cent. But after an increase of 25 basis points in the repo rate, the interest rate will increase to 8.85 per cent, on which the EMI will have to be paid at Rs 22,253. That means your EMI will become costlier by around Rs.400.
EMI increased on home loan of Rs 40 lakh
At present, the EMI for a home loan of Rs 40 lakh for 20 years at an interest rate of 8.60 per cent was Rs 34,967. But after an increase of 0.25 percent in the repo rate, interest will have to be paid at the rate of 8.85 percent, on which EMI of Rs 35,604 will have to be paid. That is, every month Rs 637 more EMI will have to be paid.
Now EMI on 50 years home loan
For a home loan of Rs 50 lakh for 15 years, the EMI was Rs 49,531 at the rate of 8.60 per cent. But after the increase in the repo rate, now an EMI of Rs 50,268 will have to be paid. Means Rs 737 expensive every month.
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