# EMI Calculator: Effect of expensive home loan, EMI repayment period beyond retirement age, know what are the options

EMI Calculator: It was before May 2022 when home loan housing finance companies were offering cheap home loans from banks. The interest rate on home loan had come down to 6.50 per cent. But in April 2022, the retail inflation increased to 7.80 percent. After this, RBI started increasing the repo rate to control inflation. RBI increased the repo rate from 4 percent to 6.50 percent in 6 steps. Whenever the RBI increased the repo rate, banks and housing finance companies increased the home loan interest rates and increased the EMI.

Home buyers who had taken 6.50 per cent home loan have to pay EMI at 9 per cent interest rate. Due to the expensive EMI, the budget of the people’s house got spoiled. Suppose a home buyer had taken a home loan of Rs 40 lakh at an interest rate of 6.50 per cent for 20 years, then he had to pay an EMI of Rs 29,823. But now the home buyer has to pay an EMI of Rs.33,568 on the same home loan. If you have to pay more EMI of Rs 3745 every month, then the burden of EMI will come to Rs 44,940 more in a year. This is when the home buyer increases his EMI and wants to keep the tenure the same. But the EMI repayment period is increasing for most of the home buyers. EMI Repayment Period Crossing the Retirement Age Limit of 60 Years.

### What are the options available to the home buyer

1. Home buyers who have taken a home loan on a floating rate and the home loan repayment period has increased, should talk to their bank or housing finance company to reduce the increased interest rate. The home loan buyer should ask his bank to reduce the tenure by increasing the EMI amount. For this they have to pay a nominal fee.

2. Banks or housing finance companies entice new home loan customers by offering home loans at cheaper rates. You can also avail this facility if you have a good credit score.

3. A slight increase in EMI will definitely put a burden on the pocket, but due to the costlier loan, there will be a reduction in the amount of interest paid to the bank, then the period for repaying the EMI will also decrease.