CURRENT AFFAIRS

Detailed explanation-1: -With the reduction, SBI’s home loan rate now stands at 7.75% as against 7.85% earlier. Do note here that all new home loans at the bank are now linked with the RBI repo rate.

Detailed explanation-2: -Repo rate is directly linked to loan rates offered by lenders so an increase in the repo will increase the borrowing cost and vice-versa. “If we take into consideration the current increase of 25 bps, the EMI for a 20-year home loan of Rs 70 lakh at 9.25 percent was Rs 64,111.

Detailed explanation-3: -Home loan EMIs have gone up significantly after six consecutive repo rate hikes in 2022. By India Today Web Desk: The Reserve Bank of India’s Monetary Policy Committee (MPC) hiked key interest rates by 25 basis points on Wednesday, taking the repo rate to 6.5 per cent.

Detailed explanation-4: -How Much Will EMIs Increase: The repo rate is directly linked to loan rates offered by the lenders. Thus, an increase in the repo will increase the borrowing cost and vice-versa. “The rate hike of 25 bps today will make EMIs expensive by approximately 2-4 per cent.