# Home Loan EMI Calculator: RBI did not give the pain of expensive loan, but home buyers are already troubled by expensive EMI

RBI Repo Rate: With the beginning of the new financial year 2023-24, RBI has given great relief to the borrowers. Announcing the results of the first Monetary Policy Committee meeting for the financial year 2023-24, RBI Governor Shaktikanta Das has decided not to make any change in his policy rate i.e. repo rate. The repo rate has been retained at 6.50 per cent. After this decision of RBI, the EMI of your home loan will not be more expensive. Earlier, RBI has increased the repo rate by 2.50 percent in six monetary policy meetings in 2022-23.

RBI did not increase repo rate

After not increasing the repo rate of RBI, from public-private banks to housing finance companies will not increase the interest rate of home loans anymore, after which your EMI will not become more expensive. But it is also true that in the last six monetary policy meetings, the RBI has increased the repo rate by 2.50 per cent, making loans costlier, which has put a huge burden on the borrowers’ pockets.

EMI becomes costlier in one year

Due to the increase in the repo rate by the RBI in the last six MPC meetings, an EMI of Rs 19,009 had to be paid earlier on a home loan of Rs 25 lakh for 20 years at an interest rate of 6.75 per cent. But after the increase of 2.50 basis points in the repo rate, the interest rate will increase to 9.25 percent, on which the EMI of Rs 22,897 has to be paid. Means EMI has become expensive by about Rs 3888. Means the annual burden has increased by Rs 46,656 in one year.

Suppose  In the era of cheap home loans  some home buyers had taken a home loan of Rs 40 lakh at the rate of 6.50%, but after RBI’s decision, they will now have to pay home loan at the rate of 9.25%. Earlier, where EMI had to be paid at the rate of 6.50 per cent, Rs 29,823. But now home buyers have to pay EMI of Rs 35,989 on the same home loan. 6166 rupees EMI has to be paid more every month. Home buyers have been burdened with an annual EMI of Rs 73992 more due to costlier home loans in the last one year.