Home Loan EMI: How much will the home loan EMI increase due to the increase in repo rate, understand the calculation here

Suppose you have taken a home loan of Rs 50 lakh for 20 years. At the current rate of 7%, the EMI works out to Rs 38,018. After the new rate of 7.40%, the home loan EMI will increase rapidly. According to this rate, the new EMI will be Rs 39,216.

Reserve Bank of India (RBI) has recently increased the repo rate. This increase was made up to 0.4 percent i.e. 40 basis points. Apart from the repo rate, other policy rates were increased. Repo rate hike fixed deposit (FDGood news for you. But for the loan, nothing could be worse than this. Due to increase in repo rate, banks increase the lending rate, which makes the loan costlier. An increase in the repo rate simply means an increase in the interest rate of the loan. Especially Home Loan Rates ,Home Loan Interest Rate) will be greater than before.

If you have already taken a home loan, then definitely check its EMI once. If you want, you can also find out in the bank what will be the effect on the loan rates. The increase in EMI will be different for different loan amounts.

How much will the EMI increase on how much loan?

Suppose you have taken a home loan of Rs 30 lakh for a tenure of 20 years. So far its rate is running at 6.75 percent. Accordingly, the EMI will be Rs 22811. But if the interest rate increases by 40 basis points due to the increase in the repo rate, then the loan rate will be 7.15%. In such a situation, the new EMI will be Rs 23530. If you look at the difference between the old and the new EMI, then it will be Rs 719. That is, due to the increase in the repo rate, an additional burden of Rs 719 will increase on your loan every month.

Suppose you have taken a home loan of Rs 50 lakh for 20 years. At the current rate of 7%, the EMI works out to Rs 38,018. After the new rate of 7.40%, the home loan EMI will increase rapidly. According to this rate, the new EMI will be Rs 39,216. In this way, an increase of Rs 1,198 will be seen in EMI. Every month you will have to pay an additional Rs 1,198 in the loan.

Take the next example of a home loan of Rs 75 lakh. A person has taken a home loan of Rs 75 lakh for a tenure of 20 years. The current interest rate is 6.75 percent, but with an increase of 40 basis points, it reaches 7.15 percent. In such a situation, the new EMI of the home loan will be Rs 58,825. The difference between the new and old EMI will be Rs 1798, which you will have to pay extra every month along with the home loan EMI.

read this also



After increasing the repo rate, it is obvious that banks will increase the interest rates of home loans. This will affect the existing customers as their rate was low earlier, but now more interest will have to be paid. Home loan will be available to new customers at an already enhanced rate.