How much will your loan EMI increase due to RBI’s decision, understand the calculation

The era of cheap loans is over. The Reserve Bank of India has increased the repo rate by 0.40 percent. After this increase, now the new rate of repo rate has become 4.40 percent. This will have a direct impact on those customers who are planning to take a home or car loan. At the same time, the EMI burden of the customers who have already taken the loan is also going to increase. Now the question is, how much will the EMI burden increase due to the repo rate hike. Let us understand this also.

Calculation

Suppose you have taken a loan of Rs 30 lakh for a tenure of 20 years. Currently, if you are paying interest at the rate of 6.8 percent, then your EMI is Rs 22,900. Now after the implementation of the new decision of RBI, the rate of interest is expected to be 7.2 percent. In such a situation, an EMI of Rs 23,620 per month will have to be paid.

In this context, the EMI of a customer taking a loan of Rs 30 lakh for 20 years will increase by Rs 720. Let us tell you that this calculation has been done according to the salaried customers. If you change the amount and tenure, then there will be a difference in EMI as well.

0.40 percent hike: On Wednesday, Reserve Bank Governor Shaktikanta Das had announced a 0.40 percent increase in the repo rate in a sudden press conference. Repo rate has been increased to 4.40 percent. RBI did not make any change in the key policy rate repo for the 11th consecutive time in the first monetary review meeting of the current financial year.