Due to the increase in interest rates by the Reserve Bank, the EMI of your home loan and auto loan will also increase.
Home Loan, Auto Loan EMI to Increase: Inflation has increased more than the tolerance level. Due to inflation, the country’s economy is also being affected and recovery is facing problems. In such a situation, to control inflation, the Reserve Bank (RBI) has increased the interest rates today. RBI increased the repo rate by 50 basis points, due to which it has increased from 4.50 percent to 4.90 percent. Earlier in May also, the repo rate was increased by 40 basis points. At present, due to the increase in interest rates by the Reserve Bank, the EMI of your home loan and auto loan will also increase. After increasing the rates, banks will make their loans expensive, as was seen in May.
Repo rate is the rate at which RBI gives loans to banks. After this increased rate, when banks will get expensive loans from the Reserve Bank, they will pass it on to the customers. That is, home loans and auto loans will be expensive in the coming days.
See EMI calculation
If you have taken a home loan of Rs 30 lakh for 20 years. If we take SBI’s loan rates on home loans, then SBI currently has an interest rate of 7.05 percent on home loans. But now if the banks also increase it by 50 basis points, then it will become 7.55 percent.
Current EMI on Home Loan
Loan – Interest – Tenure – EMI – Total Interest
30 lakhs – 7.05% – 20 years – 23349 rs – 26,03,782 rs
EMI after rate hike
Loan – Interest – Tenure – EMI – Total Interest
30 lakhs – 7.55% – 20 years – 24260 rs – 28,22,304 rs
(*SBI Interest Rates)
(Note: That is, you will get an increase of Rs 911 in EMI every month on a home loan of 30 lakhs for 20 years. Your total interest will also increase by about Rs 2.19 lakh.)
Auto Loan
Suppose you have taken an auto loan of Rs 10 lakh for 5 years. Taking SBI’s current loan rates on auto loans, it is currently 9.30 percent per annum. But now if there is an increase of 75 basis points in this too, then it will come down to 8.55 percent.
Current EMI
Loan – Interest – Tenure – EMI – Total Interest
10 Lakh – 7.80% – 60 Months – 20,181 rs – 2,10,849 rs
EMI after rate hike
Loan – Interest – Tenure – EMI – Total Interest
10 Lakh – 8.30% – 60 Months – 20,420 rs – 2,25,216 rs
(*SBI Interest Rates)
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