Home Loan Tips: Good news has come for home loan borrowers. Now there is going to be a big saving on loans up to Rs 20 to 30 lakh, which is a matter of relief for many families. This decision can prove to be a big gift for those who are thinking of taking a loan to buy their dream home. Now the interest rates on the loan (home loan interest decrease) have already come down, which will provide great relief in repaying the loan. This change can become a ray of hope for home loan borrowers.

Repo rate reduced by 25 basis points -

For the first time, the policy was changed under the leadership of the new head of the Central Bank of India, Sanjay Malhotra (RBI governor Sanjay Malhotra). In this change, the interest rate i.e. Repo Rate was reduced by 25 basis points, due to which this rate has now become 6.25 percent, which was earlier 6.50 percent. This step has reduced the financial pressure and will provide relief to the borrowers (Home Loan News). Especially for those who wish to buy a house, and who apply for a home loan, this will be a good opportunity for them. This will make various types of loans including home loans cheaper and the common man will get financial assistance, which will make it easier to repay the loan.

Reduction in Home Loan EMI of Rs 20 lakh -

If you have taken a home loan (Home Loan ki byaj dare) of a large amount of Rs 20 lakh, then till now you had to pay interest at the rate of 8.5 percent on it. If its tenure is 20 years, then you have to pay a fixed amount of Rs 17,356 every month in EMI (Home loan EMI). Recently, the central bank announced a reduction of 25 basis points in the interest rate, which also reduced your repayment amount, which has now become Rs 17,041. After this reduction, there has been a slight difference in your monthly repayment, which is saving you Rs 315. This change is giving you a little relief every month, which can support your budget.

EMI of a home loan of Rs 30 lakh reduced by this much -

Till now, those who take a loan of Rs 30 lakh have to pay a fixed amount of Rs 26,035 every month as EMI at an interest rate of 8.5 percent. When the tenure of this loan is 20 years, your monthly installments are higher. Recently, the central bank announced a reduction of 25 basis points in the repo rate (Repo Rate 25 basis point decrease), which has changed the amount you pay, and now it has come down to Rs 25,562. Now there is a slight difference in the amount you pay and you will have to pay about Rs 479 less every month, which is saving you and reducing the pressure on the budget.

Reduction in interest rate of Rs 50 lakh -

If someone gets a loan of Rs 50 lakh at an interest rate of 8.50 percent for 20 years, then he pays a monthly EMI (Home loan monthly EMI) of about Rs 43,391 every month. But, now the central bank has reduced its repo rate, so this loan is applicable at a lower interest rate. As a result, the installment of every month is reduced to Rs 42,603. Due to this change, the borrower will now have to pay Rs 788 less. Thus, the reduction in interest rate has a direct impact on the monthly installments, which benefits the borrower.

EMI Calculation Formula

P x R x (1+R)^N/[(1+R)^N-1]

P = Loan Amount

N = Loan Tenure (in Months)

R = Monthly Interest Rate
The interest rate on your loan i.e. (R) is calculated every month. With its help, you can calculate the annual interest rate using the method of 12/100.

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