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RBI increases key lending rates by 0.50% to pre-pandemic levels, 3rd hike in a row; EMIs will get costlier

By Ruchi Upadhyay 
Updated Date

New Delhi: Breaking news coming for loan borrowers. RBI’s decision on lending rates RBI said that India is battling high inflation. After the meeting of the Monetary Policy Committee, RBI has announced to increase the repo rate by 0.50 percent, after which the repo rate has increased from 4.90 percent to 5.40 percent.

Also Read :- Rajiv Ranjan, Sitikantha Pattanaik appointed as executive directors of RBI

After this decision of RBI, from government to private banks and housing finance companies will increase the interest rates of home loans, after which your EMI will become expensive. Even before this, on May 4 and June 8, 2022, RBI had increased the repo rate by a total of 90 basis points, after which banks to housing finance companies increased the interest rates on home loans from 0.90 percent to 1.15 percent. Is. Home loan EMI will now become expensive once again.

After today’s increase, the repo rate has reached the pre-corona epidemic level. This is the third consecutive hike. Prior to this, the RBI had increased the aggregate by 0.90 per cent in May and June. That is, the repo rate has increased by 1.4% in the last four months.

It was being said that to control the high inflation rate, RBI can increase the repo rate by 25 to 50 basis points.

The Governor also said that the Monetary Policy Committee has decided to focus on withdrawing the soft policy stance to contain inflation. He also said that the International Monetary Fund has lowered the economic growth forecast and expressed the risk of recession.

Also Read :- RBI monetary policy: GDP growth projected at 7.2%, Inflation to hit 5.7%

20 lakh home loan
Suppose you had taken a home loan of Rs 20 lakh for 20 years at 6.85 per cent interest rate, then you had to pay an EMI of Rs 15,326. But after a total increase of 1.40 basis points in the repo rate three times, the interest rate on the home loan will increase to 8.25 percent, after which you will have to pay an EMI of Rs 17,041. That is, in three months, Rs 1715 more EMI will become expensive. There will be an additional burden of Rs 20,580 on your pocket in the whole year.

40 lakh home loan
If you have taken a home loan of Rs 40 lakh for 15 years at 6.95 per cent interest rate, then you currently have to pay an EMI of Rs 35,841. But after increasing the repo rate by 1.40 percent, the interest rate will increase to 8.35 percent, after which you will have to pay an EMI of Rs 38,806. That is, every month Rs 2965 more EMI will have to be paid. And adding in the whole year, then 35,580 more EMI will have to be paid.

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