If a person has taken a home loan from 35 lakh to 75 lakh rupees, then the interest rate will be between 7.10 percent to 7.70 percent. The rise or fall of the interest rate will also depend on the CIBIL score. If you have taken a home loan of Rs 50 lakh, then the new interest rate will be 7.10 percent.
Reserve Bank of India (RBI) suddenly changed the repo rate on 4th May (Repo Rate) extended. Some other policy rates were increased. With the announcement of increasing the repo rate, banks have loan rates ,home loan rate) started taking the decision to increase. Some banks have even increased interest rates, including private banks ICICI Bank and Bank of Baroda. The next day after the increase in the repo rate i.e. on May 5, both these banks announced to increase the interest rates on home loans. If you are an ICICI Bank customer and have taken a home loan, then you must be aware of the new rates and EMIs.
Suppose you have taken a home of Rs 35 lakh from ICICI Bank. After increasing the repo rate, your new interest rate can be from 7.10 percent to 7.55 percent. If the CIBIL score is good then the interest will be less. You have taken a loan for 20 years and the rate is 6,70 percent. Accordingly, the EMI will be Rs 26,509. After increasing the repo rate, the new home loan rate will be 7.10 percent and the new EMI will be Rs 27,346. In this way, a jump of Rs 837 will be seen in the EMI of the home loan. That is, you will have to pay an additional Rs 837 every month on the home loan.
How much EMI on how much loan
If a person has taken a home loan from Rs 35 lakh to Rs 75 lakh, then the interest rate will be between 7.10 percent to 7.70 percent. The rise or fall of the interest rate will also depend on the CIBIL score. If you have taken a home loan of Rs 50 lakh, then the new interest rate will be 7.10 percent. However, those who have taken the loan earlier, they will have to pay EMI at the rate of 6.70 percent. The loan tenure will be 20 years and the current EMI will be Rs 37,870. After increasing the repo rate, the interest rate will increase to 7.10 percent and the EMI will increase to Rs 39,066. In this way, Rs 1196 more will have to be paid than the old EMI. Every month the pressure on your pocket will increase by Rs 1196.
If a loan of Rs 75 lakh is taken and its tenure is 20 years, then the calculation of EMI will be like this. At the current rate of 6.70 percent, an EMI of Rs 60,592 will be made. After increasing the repo rate, the home loan rate will become 7.10 percent. The new EMI will be Rs 62,506. In this way, there will be a difference of Rs 1914 in the old and new EMI. Every month, an additional Rs 1914 will have to be paid. The biggest effect of increasing the repo rate is that the EMI cost on the home loan suddenly increases.
Many banks increased rates
After the increase in the repo rate, ICICI Bank had informed about the increase in the interest rate. The bank announced that the home loan rate is now being increased to 8.10 percent. The bank decided to implement the new rates from May 4. On May 4 itself, Reserve Bank Governor Shaktikanta Das had announced to increase the repo rate. On the other hand, state-run Bank of Baroda said that the bank has increased the BRLLR for retail loans to 6.90 percent. It has been decided to implement the new rates from May 5. Bank of Baroda also announced to increase the new rates from May 5.