Home Loan: Want to save interest of 17 lakhs on home loan? Find out how – mssewb.org

Home Loan: The increase in the repo rate by the Reserve Bank of India has put the biggest pressure on home loan customers. RBI hikes repo rate to 2.25% overall in 2022 As a result banks have also increased interest rates on loans. They have increased interest rates by at least 2%.

Incidentally, the repo rate is the rate at which the Reserve Bank lends money to other banks. This time the repo rate hike means that banks have to pay higher interest rates to borrow money from the RBI. As a result, the pressure of that additional money is then imposed on the customers by the bank. In such cases the interest rate increases on the loan. As in this case.

RBI’s repo rate hike has had the biggest impact on home loan customers. Because, banks have not only increased the interest rate on home loans but also extended the loan tenure. The EMI amount has also increased.

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Let’s say a customer has a home loan of Rs 50 lakh for a tenure of 20 years. If till now he was giving home loan EMI at 7% rate, since repo rate increase, the EMI rate has become 9.25%. That is, the amount of EMI will be Rs. 38,765 to Rs. 45,793.

16.86 Lakhs will have to be paid in total as interest in such cases. 43.03 lakhs had to be paid as interest at the previous rate. It will increase to 59.90 lakhs. That is, a lot of pressure fell on the customer in one fell swoop. In this case partial payment or pre-payment early can reduce the burden of additional EMI.

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Let’s say 9.4% interest is payable on a home loan of Rs 50 lakh. The loan tenure is 15 years. This time, by making a partial payment of 7.5 lakhs, it is possible to reduce the interest on the loan by 17.73 lakhs. Not only that, experts say that it is possible to repay the loan before 48.6 months.

Another way is to reduce the total amount of interest charged on the home loan. In this case the EMI amount has to be increased. Let’s say you have a home loan of Rs 40 lakh for a tenure of 15 years. The interest rate is 9.25%. Currently the EMI amount is Rs.41,168. Now if this EMI is increased to Rs 50,000 then the loan tenure will be 10 years instead of 15 years and it will be possible to save a total of Rs 11.67 lakhs on top of the EMI.