Home Loan EMI Calculation: If you are also thinking of taking a home loan or you have already taken a home loan, then this news can be very useful for you. Recently RBI (RBI latest Update) has released a big update regarding home loan. According to the update released, now it is going to be much easier for people to take home loan. Know the complete details about this in the news.

Repo rate reduced -

Recently the Reserve Bank of India (RBI Update on home loan) has reduced the policy interest rates i.e. repo rate by 25 basis points. Due to this announcement of the bank, loan takers have got huge relief. RBI's new repo rate has been announced at 6.25 percent. After this decision, home loan takers may see a reduction in the monthly installment i.e. monthly EMI (home loan).

EMI burden will be less-

If there is a reduction in the EMI (Equated Monthly Instalment) of your home loan, then due to this, the bank can also announce a reduction in interest rates. According to the decision of RBI (RBI Monetary Policy), now banks can be expected to reduce interest rates in the same proportion. According to this, the possible benefits of interest payment will be calculated.

If you have taken a home loan of Rs 40 lakh and the tenure of this loan is 20 years, then in such a situation you will have to pay a total of 240 monthly EMIs.

On the other hand, if the annual interest rate of your home loan is 9 percent, then you will have to pay monthly installments of about Rs 35,989 every month.

In just 20 years, you will have to pay a total of about Rs 46.37 lakh as interest payment.

If your bank also cuts the interest rate after a 25 basis point cut in the repo rate (Repo rate kitna kaam hua h), then the interest on your loan will come down from 9 percent to 8.75 percent.

In such a case, the bank can reduce your loan EMI to around Rs 35,348.

The total interest payment in 20 years can also be reduced to around Rs 44.83 lakh.

That means you can save up to Rs 641 in the form of EMI every month.

Your total savings in 20 years will be around Rs 1.54 lakh.

Reduce loan EMI or tenure?

When interest rates are cut (RBI repo rate cut impact on home loan), then the bank gives you the option to reduce the EMI or reduce the loan tenure. If you decide to reduce the loan tenure instead of reducing the EMI, then you can save more money in the total interest payment and make your dream come true.

For example, if the interest rate is reduced from 9 percent to 8.75 percent, then you will have to pay an EMI of Rs 35,989 every month.

At the same time, in this situation, the total number of EMIs of your loan (Home loan EMI reduction) will also be reduced from 240 to 229.

You will have to pay 11 EMIs less to repay the same loan.

This means that your loan will end 11 months earlier.

In such a situation, your total savings will be up to 11x35,989 rupees = Rs 3,95,879.

At the same time, the savings on reducing the EMI amount was also about Rs 1.54 lakh.

Because of this, it can be clarified that the benefit of reducing the tenure will be more than double as compared to reducing the EMI amount. In such a situation, if your budget allows it, then it is very important for you to choose the option of reducing the loan tenure to maintain the EMI amount (EMI calculator).

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