Shortly, the Reserve Bank of India will give information about the decision taken in its monetary policy committee meeting today. RBI governor Sanjay Malhotra can announce a change in the repo rate at 10 am today. More likely, it is being expressed that RBI may cut the repo rate this time. This deduction can be 25 to 50 basis points.
The State Bank of India’s Research Report (SBI Report) states that RBI can cut the repo rate by 0.50 percent or 50 basis points. The report said that the RBI wants to reinforce the loan circle and reduce the impact of the existing economic uncertainties. Due to this, the deduction can be of 50 basis points.
How much interest will decrease on home loan
If the RBI cuts the repo rate by 25 basis points, the repo rate will be reduced to 5.75 percent, while this rate will come to 5.50 percent if there is a 50 -basis point cut. Right now the repo rate is at 6 percent.
Example- If your bank charges 9 % interest on home loan, then it will be reduced to 8.75 percent and 50 basis points if there is a cut of 25 basis points. That is, you will have to deposit the monthly EMI less.
How much EMI will decrease on a loan of 50 lakhs
Suppose you have taken a home loan of 50 lakhs from a bank for 30 years and if you are giving interest of 9%, then your monthly EMI will be Rs 40,231. At the same time, this EMI will be reduced to Rs 38,446 after the RBI repo rate has been cut by 50 basis points. That is, there may be a cut of Rs 2000 in monthly EMI. However, the condition is that after reducing the repo rate of RBI, your bank also cut the loan interest rate. Similarly, auto loan and other loans can also be affected.
How much will EMI be on a loan of 20 lakhs
If you have taken a loan of 20 lakhs for 20 years and after decreasing the repo rate 50 basis points, your bank also cuts the interest of the loan, then your EMI will decrease. Suppose a loan of 20 lakhs was taken at 9 percent interest for 20 years, then the monthly EMI will be ₹ 17,995. Now after cutting the interest of 50 basis point loan, the EMI of your loan will be ₹ 17,356.