Shocking news for homebuyers who bought houses with the help of bank loans, they could soon have to pay more interest on home loan EMIs.
The reason behind the increase in the interest rate on home loans is that the Reserve Bank of India (RBI) is likely to increase the repo rate by at least 25 basis points in June, according to a report by the State Bank of India (SBI).
According to the SBI Ecowrap report, interest rates on homeschooling are expected to increase by 25 basis points each in June and August. The Reserve Bank of India (RBI) is lending interest rates on commercial loans to commercial banks of the country.
A hike in the repo rate will pressurise lenders to increase interest rates on home loans, car loans, personal loans and other types of advances. So, if you have taken a home loan on a floating interest rate, you may have to pay a higher interest rate towards your home loan.
Last week, RBI announced the first monetary policy for this fiscal, fixing the repo rate at 4 per cent. This means that for the 11th consecutive year, the repo and reverse repo rates have not changed.
Even with rising inflation, maintaining a repo rate remains a big challenge for RBI.Retail inflation rose to 6.95 per cent in March due to rising food prices. For the last three consecutive months, the inflation-based threshold of the Consumer Price Index (CPI) has reached a high of 6 per cent.
Ms Kalinga