Now 20 year home loan borrowers have to pay for 24 years..?

Sowmiya Sriram
Now 20 year home loan borrowers have to pay for 24 years..?

Owning a house is the dream of most people in India. A few years before to achieve this own house, you have to buy or build your own house with money sent from abroad by your father, brother, etc. for money and huge savings. But now home loan is available to all parties and people of all income levels. Due to availability, the situation of waiting for a long time to buy own house has changed. In line with this, since the interest rate for home loans has been very low for the last 4 years, sales have become hot because real estate companies have been giving excessive discounts and offers. But now the situation has changed completely.
Home loan interest rate is increasing across all banks due to RBI continuously increasing repo rate. As a result, the tenure of the loan has increased to 24 years for those who took a 20-year home loan 2-3 years ago. Similarly, the home loan EMI amount has also increased for some. Why this change..? For whom the loan period has increased..? Whose loan EMI has increased?
The Reserve bank has raised its repo rate from 4 percent to 5.9 percent in the April-September period. At the same time, the interest rate on home loans will increase from 6.7 percent to 8.6 percent. As a result, the EMI amount for a 20-year home loan has increased from Rs 7574 to Rs 8741.In this situation, banks have increased the loan tenure from 21 to 25 years in accordance with the interest rate hike without increasing the EMI amount for the loan so as not to burden the customers with the increase in interest rate.
It varies based on credit score, EMI amount, and loan tenure. This means that if your credit score is low and your home loan tenure is between 25 years and 30 years, your EMI amount is more likely to increase. In this case, it can be adjusted by reducing the principal amount to reduce the EMI burden.
For more interesting updates click and follow Indiaherald WhatsApp channel

Find Out More:

home loan

Related Articles: