Home Loan EMI Increased: While giving relief, the Reserve Bank of India did not decide to increase the repo rate in the meeting of the Monetary Policy Committee and kept the repo rate unchanged at 6.5 percent. However, eight monetary policy meetings have been held since May 2022, in which the repo rate has been increased 6 times, due to which the repo rate has increased from 4 per cent to 6.5 per cent.
If you were paying 6.7 percent interest rate during April 2022, it means that now you have got 9.25 percent interest under EBLR. That is, your interest has increased by 2.5 percent. For example, suppose you have taken a loan of Rs 50 lakh with a tenure of 20 years, then your monthly EMI will increase from Rs 38,018 to Rs 45,707, which is an increase of 22%.
What do you need to do?
From home loan EMI to tenure, there are many such things, with the help of which you can reduce the burden of your home loan. Here are some of the ways that you should try to reduce your burden.
Pay off the loan under the old system
If you are paying the loan under MCLR and BPLR, then you do not need to change it. You should not transfer to EBLR, as the interest is lower as compared to MCLR and BPLR.
Loan Transfer Option
You should also compare the interest on your loan amount with other banks. If you are paying a higher EMI on your home loan, you can transfer your loan to a lower EMI option.
Take advantage of a good credit score
If your credit score is good then you can request your bank to give you loan at low interest. Also you can get more loan amount.
Early payment option
You can use your investments to reduce or eliminate your home loan. With the amount invested, you can eliminate the growing home loan.
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