RBI Policy: Now your home, car loan will become expensive; Know how much EMI will increase

An increase in the repo rate will make your loans like home loan, car loan etc. expensive. Your loan EMI will increase. Now this question must be coming in your mind that how much will your EMI increase, let’s know it.

An increase in the repo rate will make your loans like home loan, car loan etc. expensive.

The Reserve Bank of India (RBI) has today announced an increase of 50 basis points in the repo rate in monetary policy. The repo rate has now increased from 5.40 per cent to 5.90 per cent. An increase in the repo rate will make your loans like home loan, car loan etc. expensive. Your loan EMI will increase. Now this question must be coming in your mind that how much will your EMI increase, let’s know it.

How much will the EMI burden increase?

Suppose you have taken a home loan of Rs 20 lakh. The loan tenure is 20 years. So, now you have to pay an EMI of Rs 16,729 in a month at an interest rate of 8 per cent. Earlier, according to the interest rate of 7.5 percent, your monthly EMI was Rs 16,112. That is, in this way your monthly EMI of your home loan has increased by Rs 617. At the new interest rate, you will have to pay a total interest of Rs 20,14,912. Earlier the total interest was Rs 18,66,846. That is, you will have to pay an additional interest of Rs 1,48,066 in total.

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