RBI MPC Repo Rate Hike: How Will It Impact Your Home Loan EMIs? Check Here
By Lokmat English Desk | Published: December 7, 2022 04:59 PM2022-12-07T16:59:24+5:302022-12-07T16:59:24+5:30
Next 
The Reserve Bank has once again given a strong blow to the common man on Wednesday. RBI has increased the repo rate for the fifth time in a row this year. The Reserve Bank has increased the repo rate by 0.35 percent. So now the repo rate has increased from 5.90 percent to 6.25 percent
Due to this decision of the Reserve Bank, now all types of loans including home loans are going to be expensive. RBI Governor Shaktikanta Das announced the hike in the repo rate after the meeting of the Monetary Policy Committee. The Reserve Bank has increased the rate five times since May.
Currently, the inflation rate is higher than the Reserve Bank's target. Therefore, the Reserve Bank is currently trying to keep inflation under control. Central banks in many major countries, including the US, have raised interest rates. After increasing repo rate, now home, car and other interest.
RBI's increase in repo rate will affect both old and new customers. People who have taken loans on floating rate, their EMIs will increase. Other types of loans including car, personal loans will also be expensive. Often after the repo rate increases, banks immediately increase EMI tenures.
How much your EMI will increase will depend on the amount of loan you have taken and the remaining tenure. If your tenure is longer, your EMI will also increase. This is because the interest rate has increased by 2.25 percent after the month of May.
If you have taken a loan of 30 lakhs in the month of March this year and the tenure is 20 years. If the interest rate was 7 percent in April, it will increase to 9.25 percent in January. Your EMI will increase from Rs 23,258 to Rs 27,387.
The Reserve Bank had hiked the rate by 0.4 percent on May 4, 0.5 percent on June 8, 0.5 percent on August 5 and 0.5 percent on September 30. Interest rates were hiked by 0.40 percent in May. Retail Inflation Rate Forecast by RBI in 2023.
The inflation rate is likely to remain above 4 percent for the next year. Also, in the financial year 2023, the growth in GDP is likely to be 6.8 percent. An increase in the report was predicted by ABI.
