This was the first policy under the leadership of Sanjay Malhotra, the new Governor of the Reserve Bank of India, he has given great relief to the country by cutting the repo rate. RBI has announced a 25 -basis point cut in repo, which has now come down from 6.50% to 6.25%. With the cut in repo, all types of loans will now become cheap. Especially home loans are going to get great relief.
Before the repo rate cut, RBI Governor Sanjay Malhotra said that this decision has been taken in view of the economy and global situation. The country’s economy is strong and the central bank is constantly trying to maintain it.
Let us know how many EMIs will be made after RBI cut the interest?
How much EMI declines 25 basis points?
If you have taken a home loan of 20 lakh rupees and the interest of the loan is 8.5 percent. While the tenor is for 20 years, your EMI will be Rs 17,356 at the moment. But after the RBI’s 25 basis point cut, now the interest of the loan will be 8.25 percent. On this basis, now your EMI will be reduced to Rs 17,041, that is, you will be able to save Rs 315 every month.
Now so much EMI on home loan of 30 lakhs
On the other hand, if you have taken a loan of Rs 30 lakh for 20 years at 8.50 per cent interest rate, then every month it will have to pay Rs 26,035 EMI, but when the RBI reduces the repo rate by 25 basis points, this monthly EMI is reduced to Rs 25,562. Will go According to this, you will save about 473 rupees every month.
Monthly Rs 788 saving on 50 lakh home loan
On the other hand, if someone has taken a home loan of Rs 50 lakh for 20 years at 8.50 percent interest, then he will have to pay Rs 43,391 every month, but after a cut of 25 basis points in the repo rate, this monthly EMI will be Rs 42,603. . That is, 788 rupees will be saved every month.
EMI calculation formula
P x r x (1+r)^n / [(1+R)^N-1]
P = Loan amount
N = Loan tenor (in months)
R = Monthly interest rate
The interest rate (R) on your loan is calculated per month. Whom you Annual interest rate/12/100 Can remove in a way.
Repo rate reduced after 5 years
The Reserve Bank of India (RBI) last cut the rate at the time of Kovid (May 2020) by the Reserve Bank of India (RBI), i.e. scissors at the repo rate for about 5 years. Talking about the change, the repo rate was increased to 6.5 percent in February 2023, after which there was no change in the repo rate.
SBI will reduce interest soon
Meanwhile, SBI managing director Ashwini Kumar said that soon the gift of EMI cuts is going to be received. Those who take home loans from SBI will soon get news of cutting EMI from the bank. He said that the bank is going to decide to cut interest rate.