slide

How RBI repo rate hikes impact your home loan EMIs?


 Home loan EMIs have been impacted by interest rate changes in India, either increasing the EMIs or the tenure for home buyers.

Home loan EMIs have two components: interest servicing portion and principal repayment portion.

As time progresses, the proportion of principal components keeps increasing in the EMI and proportion of interest servicing keeps decreasing.


 If the rate of interest increases, the lender bank will ask the homeowner to increase the EMI or increase the tenure of the loan.


 Due to various factors, the Reserve Bank of India has increased the repo rates, resulting in banks having to increase the rate of interest on floating rate loans.


Home loan interest rates are linked to the repo rates determined by the Reserve Bank of India.


 In such cases, the homeowner can also opt to make a part repayment to bring the principal outstanding down so that the initially planned EMI is reasonably greater than interest component.


Click here to know about effect of rate hikes on home loan EMIs.

Check here for more personal finance stories.


How RBI repo rate hikes impact your home loan EMIs?

When RBI increases the repo rate, home loan EMIs increase, leading to a higher principal repayment portion in the EMI and an increase in the loan tenure, unless the borrower is willing to increase the EMI or makes a part repayment to bring the principal outstanding down.

Investors make a beeline for debt mutual funds before tax benefit is phased out: Report

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

HDFC Life Smart Pension Plus Plan for annuity income across tenures. Details here

Finance bill 2023: How does it reduce the tax burden of small taxpayers with marginal relief?

NFO Alert: Mirae Asset Mutual Fund launches Nifty 8-13-yr G-Sec ETF; all you need to know

Home loans: 5 things new borrowers can learn from previous interest rate hikes

Your Questions Answered: I'm a 33-year-old government employee and want to know how debt mutual funds are taxed?

Retirement planning: 9 key factors that impact your annuity income

Magic of Compounding: How much return do mutual funds give in 20 years?

Stock Check: JSW Infra jumps almost 100% from IPO price in 5 months; should you still buy?

Currently trading at around  <span class='webrupee'>₹</span>236, the newly listed JSW Infra has surged almost 100 percent jump from its IPO price of  <span class='webrupee'>₹</span>119 in less than 5 months. Technical and fundamental experts suggest if you should still buy the infra stock.

Axis Mobile App ranks top position on NPS leaderboard

According to a survey, Consumer awareness was most notable for payment platforms such as Paytm, Google Pay, and PhonePe. However, when it comes to Net Promoter Score, Axis Mobile App claims the top position with a score of 59, followed by ICICI Bank's iMobile Pay, and then BHIM.

Weekend Wrap: From Trent to Adani Power, top news and market movers this week: 27 October 2023

The stock market cycle is always a few months ahead of the economic cycle.

From top news makers to market performance, here's the market wrap for the week ended 27 October 2023.

Why rebalancing a portfolio provides a safety net against volatility?

Investing isn't a 'set it and forget it' game.

Rebalancing a portfolio provides a safety net by helping control volatility and minimizing the impact of market downturns, even though it may not always yield higher returns compared to an unbalanced, equity-heavy approach

Rebalancing of portfolio: What is it and why is this important?

Whenever the market spikes or declines, investors are supposed to rebalance their portfolio strategically in order to stay aligned to their financial goals

How RBI repo rate hikes impact your home loan EMIs?

When RBI increases the repo rate, home loan EMIs increase, leading to a higher principal repayment portion in the EMI and an increase in the loan tenure, unless the borrower is willing to increase the EMI or makes a part repayment to bring the principal outstanding down.

Topics to follow