Every person dreams to have a small house of his own. To fulfill this dream, many people take the help of home loans. Nowadays banks also give home loans to customers easily. Based on the Repo Rate and Reverse Repo Rate to be decided by the Reserve Bank of India,
At what rate of interest will the bank give loans to the customers? The central bank has not made any change in the repo rate and reversed the repo rate. At present, the repo rate is 4 percent and the reverse repo rate is 3.35 percent. In such a situation, the chances of any change in your EMI are very less.
EMI is decided by the repo rate
Let us tell you that the country’s largest public-sector bank is giving loans at an interest rate of 6.70 percent. At the same time, the Bank of Maharashtra is giving loans to customers at an interest rate of 6.40 percent. It is worth noting that the EMI of the home loan is fixed according to the repo rate of the Reserve Bank of India.
The Repo rate is the rate at which banks take loans from RBI. On the other hand, the reverse repo rate is the rate at which RBI pays interest on deposits to banks. An increase or fall in the repo rate directly affects your EMI. Explain that this interest rate of the State Bank of Dandiya and Bank of Maharashtra is applicable only till March 31, 2022.
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EMI to be paid on home loan
If you take a home loan from SBI, then you will have to pay this amount
Total loan amount- Rs. 30 million
Loan tenure – 20 years
Bank interest rate- 6.70% p.a.
EMI per month – 22,722 interest
Charged by Bank – 24,53,240
The total amount you will pay back to the bank – is 5453240
If you take a home loan from the Bank of Maharashtra, then you have to pay this amount
Total loan amount- Rs. 30 million
Loan tenure – 20 years
Bank interest rate- 6.4% p.a.
EMI per month – 22,191 interest
Charged by Bank – 23,25,822
The total amount you will pay to the bank – is 53,25,822