Increase in RBI's repo rate will affect your pocket, know how
The Reserve Bank of India has increased the repo rate by 35 basis points to 6.25% today. This increased repo rate is going to affect your pocket as well. How? Let's know.
Muskan 
Even before the beginning of the new year, the Reserve Bank of India (RBI) increased the repo rate to 6.25% on Wednesday, December 7, the last day of the meeting of the Monetary Policy Committee. The change in the repo rate will now affect your pocket as well. Especially on those people who have taken a house loan to buy a house, or are willing to take it.
Increasing the repo rate of RBI will affect your pocket as well. With the increase in the repo rate, taking a home loan to buy a house will now become costlier than before. This will also increase the interest and EMI on the home loan. Before the increase in the repo rate, the interest rate on home loans was 8.40%, which will be 8.75% after the increase in the repo rate. This will also increase the installment of EMI every month. 6,660 higher EMI per annum for loans up to Rs 25 lakh for 20 years and Rs 10,656 more per annum for loans up to Rs 40 lakh for the same tenure.
RBI increased the repo rate earlier this year as well, which has affected home loans. The repo rate was increased by 0.40% in the meeting of the Monetary Policy Committee held in May. After this, RBI increased the repo rate by 0.50% in June. Then RBI increased the repo rate by 0.50% in August and also by 0.50% in September. From May to September, RBI increased the repo rate by 1.90%. With every increase in the repo rate, the interest and EMI on the home loan have also increased.
