Borrowers will see an increase in EMI?…
HDFC – Borrowers will see an increase in EMI?…
One day after the bank OF INDIA’ target=”_blank” title=”the reserve bank of India-Latest updates, photos, videos are just a click away, CLICK NOW’>the reserve bank of India raised the repo rate by 50 basis points to check the rapidly rising inflation, HDFC, ICICI, Bank of Baroda, RBL and many home lenders including the federal bank increased their interest on home loans.
HDFC, one of the country’s biggest lenders, said on Thursday its lowest home loan will now start at 7.55% from 6.7% in March. Rates for ICICI loans will now start at 8.6%, while those for RBL will start at 8.55%. The EMI of the existing floating home loan will also increase. Tell us how you can keep your EMI low?
Loan transfer option:
There are many options available for those who want to keep their EMI low. A customer can easily refinance their loan. Many lenders offer lower rates than they get from their current lender. Almost all lenders offer this service. However, refinancing only works on loan transfers if the borrower still has a substantial amount of loan to repay.
Short term loan
Most banks give loans for up to 30 years. The most popular term that borrowers opt for loan repayment is 20 years. However, if one wishes to reduce the EMI, one can extend the duration of the loan. The downside of availing this is that he has to pay a higher amount of interest. However, it also means freeing yourself from the burden of the loan by making a one-time prepayment. If you can increase the amount to pay more EMI by increasing the amount a little more, your loan will end soon.