HDFC Hikes Home Loan Rate: The EMI of the customers who have taken home loan from HDFC, the country’s largest housing finance company, is becoming increasingly expensive. In a month, this housing finance company has increased interest rates by 40 basis points in three times. That is, with the EMI being expensive and if you are thinking of buying a new home for yourself by taking a home loan, then you will have to pay more interest. HDFC has increased the Retail Prime Lending Rate (RPLR) on housing loans by 40 basis points.
Effect of RBI raising repo rate
After the decision of RBI to increase the repo rate, banks from housing finance companies have started making loans expensive. And the biggest brunt of the costly loan will have to be borne by those people who have bought their house in recent times by taking home loan from bank or housing finance company. RBI has decided to increase the repo rate by 40 basis points, which has now become 4.40 percent. Let’s have a look at how much it will affect your pocket after increasing the 40 basis point interest rate on HDFC’s home loan.
Home loan of Rs 20 lakh
Suppose you have taken a home loan of Rs 20 lakh for 20 years at 6.85 per cent interest rate, then at present you have to pay an EMI of Rs 15,326. But after HDFC has increased the interest rate by 40 basis points in two phases, the new rate will become 7.25 percent, after which you will have to pay an EMI of Rs 15,808. That is, Rs 482 more every month and an additional load of Rs 5,784 in the whole year.
40 lakh home loan
If you have taken a home loan of Rs 40 lakh at 6.95 per cent interest rate for 15 years, then you currently have to pay an EMI of Rs 35,841. But after increasing the repo rate, the interest rate will increase to 7.30 percent, after which you will have to pay an EMI of Rs 36,740. That means Rs 900 more every month. And if you add it in the whole year, then 10,800 rupees more EMI will have to be paid.
50 lakh home loan
More interest is to be paid on the racker of bigger home loan. If you have taken a home loan of Rs 50 lakh for 20 years at 7.25% interest rate, then you have to pay an EMI of Rs 39,519. But after the increase in the RBI repo rate, the interest rate will be 7.60 percent, after which an EMI of Rs 40,739 will have to be paid. That is, every month you will have to pay more EMI by Rs 1220 and in a year you will have to pay Rs 14,640 more.
EMI will be more expensive
But the process of EMI becoming expensive is not going to stop here. It is believed that on June 8, RBI will announce the monetary policy, then it may be announced to increase the interest rates again, due to which the EMI can become expensive.