Home Loan Interest to Increase: Higher EMI or Prepayment, How to Minimise Rising Cost
2 years, 4 months ago

Home Loan Interest to Increase: Higher EMI or Prepayment, How to Minimise Rising Cost

News 18  

The Reserve Bank of India has recently increased the repo rate by 50 basis points to tame rising inflation in the country. Loan Interest Rates to Increase; Borrowers to Feel the Pinch “Home loans and other retail loans linked to repo rates would witness the quickest transmission of policy rate hikes. The exact date of transmission of the increased policy rates for fresh home loan and other retail loan borrowers would depend on the rate reset dates set by the banks as per their guidelines. Prepayment of Home Loan To save the rising interest cost, the borrowers can consider prepayment option.”Existing home loan borrowers with adequate surpluses should prepay their home loans and preferably opt for the tenure reduction option to generate higher savings in interest cost,” suggested Kukreja. “Existing home loan borrowers who have witnessed substantial improvements in their credit profile availing their home loan should explore the possibility of interest cost savings through home loan balance transfer,” Kukreja suggested.

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History of this topic

Home loans may become more affordable and boost the real estate sector, experts say
2 weeks, 4 days ago

Home loans may become more affordable and boost the real estate sector, experts say

Hindustan Times  

The Reserve Bank of India's December 2024 monetary policy decision will make home loans cheaper and benefit India's real estate sector, according to several industry experts. The central bank's monetary policy committee decided to keep the repo rate unchanged at 6.5% for the 11th consecutive time, but slashed the cash reserve ratio by 50 basis points, bringing it down to …

RBI keeps repo rate steady: Will there be any impact on your home loan EMIs
4 months, 2 weeks ago

RBI keeps repo rate steady: Will there be any impact on your home loan EMIs

Hindustan Times  

The Reserve Bank of India kept repo rate steady at 6.5 percent for the ninth time in a row in its Monetary Policy Committee review. This year, HDFC Bank increased home loan rates for new borrowers by 40 basis points despite repo rates being steady. For HDFC Bank, the lowest interest rate on a ₹50-lakh home loan was 8.35 per …

Know How to Calculate Home Loan EMI and Navigate Interest Rates
7 months, 1 week ago

Know How to Calculate Home Loan EMI and Navigate Interest Rates

Hindustan Times  

Buying a home is often the most significant financial decision many people make in their lifetime. When it comes to home loans, it's crucial to understand how EMI calculations and interest rates impact your financial obligations. Understanding Home Loan EMI Calculation EMI is the fixed monthly payment a borrower makes to the lender to repay the loan amount along with …

RBI Monetary Policy 2024: Stability in interest rates to benefit homebuyers; boost housing sales
8 months, 2 weeks ago

RBI Monetary Policy 2024: Stability in interest rates to benefit homebuyers; boost housing sales

Hindustan Times  

As expected, the Reserve Bank of India on April 5 once again kept the repo rate unchanged at 6.5 per cent. RBI MPC: Reserve Bank of India's decision to keep repo rates unchanged offers a sense of continuity and predictability to the real estate sector. It is also expected to significantly boost overall market sentiment, pushing residential sales in the …

RBI repo rate decision: What will be impact on home loan EMIs
8 months, 2 weeks ago

RBI repo rate decision: What will be impact on home loan EMIs

Hindustan Times  

The Reserve Bank of India kept the repo rate steady at 6.5 percent for the seventh time in a row. This means that your home loan interest burden and equated monthly installments will remain unchanged for now. RBI repo rate decision: This means that your home loan interest burden and equated monthly installments will remain unchanged for now. Looking ahead, …

Home loan interest rate spikes to 8.5%: RBI takes measures to protect the interest of loan borrowers. Details here
1 year, 2 months ago

Home loan interest rate spikes to 8.5%: RBI takes measures to protect the interest of loan borrowers. Details here

Live Mint  

Home loan interest rates have increased from around 6.5% to 8.5% in the last two years. At the time of interest rate change, the borrower to choose whether to increase EMI or loan tenor: Earlier, whenever the interest rates on home loans went up, banks increased the loan tenor. The framework will require the bank to inform the borrower at …

RBI Keeps Repo Rate Unchanged: What It Means For Your Home Loan?
1 year, 2 months ago

RBI Keeps Repo Rate Unchanged: What It Means For Your Home Loan?

News 18  

RBI MPC Meeting October 2023: Reserve Bank of India on Friday kept the report rate unchanged as was expected from many quarters of the industry. Announcing the decision, RBI Governor Shaktikanta Das said that the monetary policy committee decided to keep the repo rate unchanged at 6.5 per cent unanimously. Overall, we believe that this momentum is projected to persist …

RBI Allows Borrowers to Change Interest Rate
1 year, 4 months ago

RBI Allows Borrowers to Change Interest Rate

Deccan Chronicle  

Mumbai: The Reserve Bank of India on Friday asked lenders to provide options to floating rate loan borrowers to either increase Equated Monthly Instalment or tenure or prepay the full amount or a part of it at any point during the tenure or move to fixed-rate interest rate at the time of resetting the loan. The central bank said that …

Borrowers can switch to fixed rate loans
1 year, 4 months ago

Borrowers can switch to fixed rate loans

Deccan Chronicle  

MUMBAI: The Reserve Bank of India on Thursday decided to keep the repo rate unchanged at 6.5 per cent for the third time in a row, giving some respite to home loan borrowers who have seen their EMIs rise considerably. The other good news is that the central bank announced to establish a framework for bringing in more transparency for …

How RBI policy outcome will impact home loan borrowers explained
1 year, 4 months ago

How RBI policy outcome will impact home loan borrowers explained

Live Mint  

The Reserve Bank of India has released a key proposal with the goal of improving both the flexibility and transparency of rates of interest on variable-rate loans. The framework will require Regulated Entities to clearly communicate with borrowers for resetting the tenor and/or EMI; provide options for switching to fixed-rate loans or foreclosure of loans; disclose various charges incidental to …

RBI repo rate pause brings relief to home buyers, real estate sector
1 year, 8 months ago

RBI repo rate pause brings relief to home buyers, real estate sector

Hindustan Times  

Mumbai: After six consecutive hikes, the Reserve Bank of India’s decision on Thursday to keep the repo rate of 6.50 per cent unchanged came as a huge relief to the real estate industry as well as home buyers paying back home loans. I am trying to sell my flat, but with the rising interest rates, buyers seem to be delaying …

How RBI repo rate hikes impact your home loan EMIs? Here’s all you need to know
1 year, 8 months ago

How RBI repo rate hikes impact your home loan EMIs? Here’s all you need to know

Live Mint  

Recently, there has been a massive impact in the home loan Easy Monthly Instalments due to interest rate changes in India. Proportion of interest servicing and principal repayment depends on various factors such as tenure of loan, rate of interest, part payments and number of EMI’s already paid. What it means is that the initially planned EMI of ₹ 62,551 …

Home Loan EMI: Reduce Burden Of Rising Interest Rates With 5 Easy Ways
1 year, 9 months ago

Home Loan EMI: Reduce Burden Of Rising Interest Rates With 5 Easy Ways

News 18  

Home Loan EMI stands for Equated Monthly Instalment, which is an amount that a borrower pays to the lender each month towards repayment of their home loan. Now, amid these circumstances a loan borrower seeks to minimise the cost of a home loan amid increasing interest rates, to balance the budget of his/her house. Gaurav Mohta, chief marketing officer, HomeFirst, …

Smart Ways To Reduce Home Loan EMI Burden When Interest Rates Increase
1 year, 10 months ago

Smart Ways To Reduce Home Loan EMI Burden When Interest Rates Increase

News 18  

The Reserve Bank of India recently announced an increase of repo rate by 25 basis points to 6.5 %. Home loans offer flexible repayment options, including fixed or floating interest rates, tenure, and repayment options, which can be tailored to meet the needs of individual borrowers. Opt for home loan with overdraft facility: Though interest rate for such EMI would …

Repo rate hike: Developers watch cautiously, home buyers to pay more
1 year, 10 months ago

Repo rate hike: Developers watch cautiously, home buyers to pay more

Hindustan Times  

The Reserve Bank of India’s sixth consecutive hike in repo rate on Wednesday has made the real estate industry cautious that it may hit the housing demand and at the same time has left home buyers worried about the rising home loan EMIs. Shishir Baijal, CMD, Knight Frank India, said since the rate hike cycle began in May 2022, RBI …

Realtors see rise in home loan rates; demand for affordable, lower-to-mid-income housing may be hit
1 year, 10 months ago

Realtors see rise in home loan rates; demand for affordable, lower-to-mid-income housing may be hit

The Hindu  

The RBI's decision to raise the repo rate by 25 basis points will result in an increase in interest rates on home loans and may impact demand for affordable and lower mid-income housing segments, according to property developers and consultants. The impact of the increase on home loan interest rates would be a deterrent in the affordable housing segment, he …

RBI Monetary Policy: Repo Rate Hike Likely To Dampen Homebuyers' Sentiment
1 year, 10 months ago

RBI Monetary Policy: Repo Rate Hike Likely To Dampen Homebuyers' Sentiment

ABP News  

As the Reserve Bank of India on Wednesday announced an increase of repo rate by 25 basis points to 6.5 per cent, the interest rate on home loans is expected to increase. "With repo rates now at 6.5 per cent, there could be some repercussions on housing uptake as home loan interest rates will head further north. When the central …

RBI MPC: Home Loan EMIs Set To Increase By 2-4% Post RBI Rate Hike, Say Experts
1 year, 10 months ago

RBI MPC: Home Loan EMIs Set To Increase By 2-4% Post RBI Rate Hike, Say Experts

News 18  

The interest rate on home loans is expected to increase as the Reserve Bank of India on Wednesday announced an increase of repo rate by 25 basis points to 6.5 %. Ratan Chaudhary, Head, Home Loans, Paisabazaar, said, “Existing home loan borrowers can either opt for the EMI increase or tenure increase option, with the consent of the lender, as …

How RBI’s 25 bps repo rate hike could impact your loan EMIs
1 year, 10 months ago

How RBI’s 25 bps repo rate hike could impact your loan EMIs

Live Mint  

As widely speculated, the Reserve Bank of India has hiked the repo rate for the sixth time in a row, by 25 bps to 6.50% with immediate effect. After the RBI's latest repo rate hike on February 8, banks are expected to raise interest rate in retail loans. So, it's of utmost importance for a common man to know how …

RBI repo rate hike: Should you pay higher EMIs or increase tenure to tackle increasing loan rates?
2 years ago

RBI repo rate hike: Should you pay higher EMIs or increase tenure to tackle increasing loan rates?

Firstpost  

You can shorten your loan tenure by prepaying your home loan as and when the funds are available with you The repo rate was hiked by the Reserve Bank of India on 7 December by 35 points to 6.25 percent. After the rise in repo rate, the cost of loan for both existing and new home loan borrowers will increase …

RBI repo rate hike: Tips for home loan borrowers to deal with higher EMIs
2 years ago

RBI repo rate hike: Tips for home loan borrowers to deal with higher EMIs

Firstpost  

If you took a home loan at 6.75 per cent interest a few months ago, then the same loan will be available at an interest rate of 9 per cent In order to contain inflation, the Reserve Bank of India has been hiking the repo rate since May. The latest rise in repo rate will cause higher Equated Monthly Installments …

RBI raises repo rate by 35bps to 6.25%, highest since March 2019
2 years ago

RBI raises repo rate by 35bps to 6.25%, highest since March 2019

Hindustan Times  

Loans and mortgages will get more expensive with the Reserve Bank of India’s Monetary Policy Committee announcing a fifth consecutive interest rate hike on Wednesday, of 0.35 percentage points, taking the policy rate to 6.25%, the highest since March 2019. RBI has taken up the policy rate by 2.25 percentage points since May, and the tone and tenor of its …

Home Loan, Car Loan EMIs to Increase as RBI Hikes Repo Rate by 35 bps; What Should Borrowers Do
2 years ago

Home Loan, Car Loan EMIs to Increase as RBI Hikes Repo Rate by 35 bps; What Should Borrowers Do

News 18  

RBI MPC Meeting December 2022: The Reserve Bank of India has increased the repo rate by 35 basis points to 6.25 per cent in its December Monetary Policy Committee meeting. Atul Monga, CEO and co-founder of BASIC Home Loan, said: “An increase in interest rates will be felt especially by the new borrowers, existing borrowers will not usually be affected …

Home Loan EMIs: A 150-250 bps Hike In Interest Rates Leads To Installments Go Up By 8-21%
2 years, 1 month ago

Home Loan EMIs: A 150-250 bps Hike In Interest Rates Leads To Installments Go Up By 8-21%

News 18  

An increase of 150-250 basis points in interest rates may lead to EMIs going up by 12-21 per cent in the case of prime home loans and 8-13 per cent in the case of affordable home loans while maintaining the original tenure, according to a report by rating agency ICRA. In the case of affordable home loans, the extension of …

Home loan repayment: Opting for longer tenure? Here's what it could mean for mortgage borrowers
2 years, 2 months ago

Home loan repayment: Opting for longer tenure? Here's what it could mean for mortgage borrowers

Firstpost  

According to BankBazaar’s analysis, buyers who took a home loan of Rs 50 lakh for a tenure of 20 years at 7 percent in the past two years have seen the rate increase to 8.9 percent Home loan borrowers have been in a dilemma these past few months. The 190-basis point repo rate hike by the Reserve Bank of India …

The buyer may wait a little longer
2 years, 4 months ago

The buyer may wait a little longer

The Hindu  

The RBI has increased repo rate by 50 bps, the third consecutive rate hike in the last two months, thus signaling an end to the all-time low-interest rates regime. On the other hand, while real estate market faces an imminent trickle-down effect of the repo rate, it is equally important that the economy continues to grow in a stable and …

Home Loan EMIs to Increase as RBI Hikes Repo Rate; Know How Much you Have to Shell Out
2 years, 4 months ago

Home Loan EMIs to Increase as RBI Hikes Repo Rate; Know How Much you Have to Shell Out

News 18  

The Reserve Bank of India has increased the repo rate by 50 basis points to 5.4 per cent on August 5. India’s central bank has also remained focused on withdrawal of accommodative stance to maintain inflation within the target while supporting growth.”RBI’s decision to raise the repo rate is in response to the headwinds being faced by Indian economy including …

How loan EMIs, bank FDs could be impacted by RBI’s interest rate hike
2 years, 4 months ago

How loan EMIs, bank FDs could be impacted by RBI’s interest rate hike

Live Mint  

The Reserve Bank of India today raised repo rate by 50 bps to 5.40 per cent, thus reaching to pre-Covid levels. However, they said that RBI rate hike may become a costly affair for new loan borrowers and existing Repo Rate-linked long-term retail loans. Speaking on how one's retail loan's EMIs and bank fixed deposits will be impacted from this …

Rising interest rate may dent homebuyers’ affordability: Report
2 years, 6 months ago

Rising interest rate may dent homebuyers’ affordability: Report

Live Mint  

The upturn in the interest rate cycle could be a significant headwind for the real estate sector that has been on a strong recovery path after surviving the worst of the pandemic, Knight Frank India said in a report released today. While it is a critical tool in the fight against burgeoning inflation, this turn in the interest rate cycle …

Home Loan, Auto Loan EMIs to Become Dearer As RBI Hikes Repo Rates In Surprise Move
2 years, 7 months ago

Home Loan, Auto Loan EMIs to Become Dearer As RBI Hikes Repo Rates In Surprise Move

News 18  

Reserve Bank of India governor Shaktikanta Das Wednesday said it held an off cycle-meeting amid high inflation and voted to increase the repo rate by 40 basis points, citing persistent inflationary pressures in the economy. Atul Monga, Co-Founder & CEO, BASIC Home Loan, said: “The hike in repo rate is a calculated measure that RBI has taken to combat inflation …

Home Loan to Remain Cheaper: RBI Relaxes Loan-to-Value Rules till March-end Next Year
2 years, 8 months ago

Home Loan to Remain Cheaper: RBI Relaxes Loan-to-Value Rules till March-end Next Year

News 18  

In a move to make home loans cheaper, the Reserve Bank of India on Friday announced that it will rationalise the risk weights and link them to loan-to-value ratios for new home loans till March 31, 2023. Being a tangible asset and safe haven investment, people continue to invest in real estate.” “As home loans are likely to remain cheaper, …

What factors to consider while taking a home loan?
2 years, 11 months ago

What factors to consider while taking a home loan?

Business Standard  

The Reserve Bank of India kept the key policy rates unchanged last month. Some lenders even went on to slash it further to support the ongoing recovery.Housing Development Finance Corporation, or HDFC, India’s largest housing finance company, is offering home loans at interest rates starting at 6.7% to new applicants, regardless of the loan amount or employment category. Home loan …

Factors to consider before opting for a home loan balance transfer
3 years, 3 months ago

Factors to consider before opting for a home loan balance transfer

Live Mint  

The ongoing low-interest rate regime has led many banks and housing finance companies to offer home loan interest rates starting as low as 6.65% per annum. Calculate savings in the overall interest cost: The primary reason for opting for a home loan balance transfer is to reduce the overall interest cost of the loan, especially those availed at a much …

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