RBI Hikes Repo Rate: Reserve Bank of India Governor Shaktikanta Das on Wednesday announced an increase in the repo rate by 50 basis points. After this the repo rate increased from 4.40 percent to 4.90 percent.
RBI Hikes Repo Rate: Reserve Bank of India Governor Shaktikanta Das on Wednesday announced an increase in the repo rate by 50 basis points. After this the repo rate increased from 4.40 percent to 4.90 percent.
The repo rate was increased by RBI for the second time in the last one month. Home loan, personal loan and car loan EMIs are almost certain to increase after the repo rate hike.
Loan EMI will increase
RBI’s change in the repo rate has cleared the way for banks to increase the interest rate on loans. With the increase in the repo rate, your home loan, car loan EMI will increase in the coming days. After the announcement of monetary review policy by RBI, the stock market saw a fall. The stock market, which opened with a green mark on Wednesday morning, reached below 55 thousand at 10.30 am.
What will be the effect?
The effect of increasing the repo rate will be on your home loan, car loan or any other loan. If you already have a loan going on or you are about to take a loan, then due to the increase in the interest rate from the bank in the coming days, the EMI will be higher than before. This will affect both new and old customers. Let us understand it in numbers.
The burden of 11 thousand will increase annually
If a customer has taken a home loan for 20 years. So far, if your home loan interest rate is 7.20 percent, then now it is likely to increase to 7.70 percent. You are paying an EMI of Rs 23,620 per month for 20 years at the current rate of interest on a loan of 30 lakhs.
But with an increase of 0.50 percent in the interest rate, this EMI will increase to Rs 24,536. That is, every month Rs 916 more will have to be paid. According to this, about 10992 rupees will have to be paid every year.
What is repo rate?
The rate at which loans are given by RBI to banks is called repo rate. The increase in the repo rate means that banks will get loans from RBI at a higher rate. This will increase the interest rate on home loan, car loan and personal loan etc., which will have a direct impact on your EMIs.
