Get Ready To Pay More for Home Loans, EMI, etc.As RBI Hikes Repo Rate Again

By hiking the interest rate by 0.25 percent on Wednesday, the Reserve Bank of India makes another blow on the backbone of your budget. The decision was taken keeping the inflationary concerns in mind. This has happened for the second time in two months. In its third bi-monthly policy of the current fiscal, RBI has increased the benchmark repo or the short-term rate at which it lends to other banks by 0.25 percent to 6.5 percent.

Headed by the RBI governor Urjit Patel, The Monetary Policy Committee (MPC) showed a neutral stance. For July-September, it estimated CPI-based retail inflation at 4.2 percent, which it was firming up to 4.8 percent in the second half of 2018-19 FY.

Impact On Us:

• Home Loans Are Set To Get Costlier
• Auto Loans Will Also Be Costly
• Yes, EMIs Also
• The Housing Sales Will Get Affected.

How Much Do You Have To Pay Now?

Let’s assume that you have taken a home loan of 50 Lakh for 20 years, then you have to pay about ₹ 800 more on your monthly EMI. Similarly, on an auto loan of 10 Lakh for 5 years, your monthly EMI will be increased up to ₹ 122.

Why Is RBI Concerned About the Inflation to Go UP?

• Crude oil prices might go up
• Instability in the global financial market
• The boost in the manufacturing cost of companies
• Unequal distribution of monsoon
• More than average increase in MSP by the government