Friday, March 24, 2023
  • Home
  • Privacy Policy
  • Contact us
pilarr.com
  • Home
  • Business
  • News
  • Entertainment
  • Fashion
  • Foods
  • Health
  • Lifestyle
  • Social Media
  • Sports
  • Tech
  • Travel
No Result
View All Result
pilarr.com
Home News

What is Repo Rate & How does it impact your Home Loan EMI?

Saykat by Saykat
October 25, 2022
in News
0
What is Repo Rate & How does it impact your Home Loan EMI?
0
SHARES
14
VIEWS
Share on FacebookShare on Twitter

If you’re a home buyer, it’s important to understand the repo rate and how it impacts your home loan EMI. The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends money to banks. When the RBI increases the repo rate, it becomes more expensive for banks to borrow money, which usually increases home loan interest rates.

So, what does this mean for you? It means that your home loan EMI could go up! This blog post will discuss how the repo rate impacts home loan EMIs.

Related posts

Know How To Make A Claim On Your Insurance Policy: A Step-By-Step Guide

Know How To Make A Claim On Your Insurance Policy: A Step-By-Step Guide

March 23, 2023
How to Make Your Own Pin Badge

How to Make Your Own Pin Badge

March 20, 2023

Let’s get started.

What is Repo Rate?

The Repo Rate is the interest rate at which commercial banks borrow money from the Reserve Bank of India (RBI). When RBI needs to control inflation, it increases the repo rate. As a result, home loan EMIs become expensive for borrowers as banks pass on the higher cost of borrowing to them. On the other hand, if RBI wants to encourage home loan growth, it will reduce the repo rate. This makes home loans cheaper for borrowers.

What is Reverse Repo Rate?

The reverse repo rate is the rate at which the RBI borrows money from commercial banks. An increase in the reverse repo rate means commercial banks will get a higher interest rate when they park their excess funds with the RBI. A reduction in the reverse repo rate would have the opposite effect – commercial banks would earn less on their idle cash and thus be more inclined to extend loans to borrowers. Home loan EMI calculator is also helpful in estimating the monthly installments.

How is Repo Rate Different from the Reverse Repo Rate?

The main difference between the two rates is that the repo rate is the rate at which the RBI lends money to commercial banks, while the reverse repo rate is the rate at which commercial banks lend money to the RBI. The repo rate is always higher than the reverse repo rate. Another difference between the two rates is that changes in Repo Rate directly impact home loan EMIs, while changes in the reverse repo rate indirectly impact home loan EMIs.

When RBI wants to make it more expensive for banks to borrow money, it increases the repo rate. As a result, home loan interest rates also increase and become more expensive. On the other hand, when the RBI wants to make it cheaper for banks to borrow money, it decreases the repo rate.

Impact of Repo Rate on Home Loan

An increase in repo rate impacts both home loan borrowers and depositors. When the cost of borrowing goes up for banks, they are likely to pass on this increased cost to their customers through a higher Marginal Cost based Lending Rate (MCLR). This would mean an increase in your home loan EMI outgo.

On the other hand, if you have a home loan with a floating interest rate, an increase in repo rates would mean an increase in your home loan interest rate and, consequently, your EMIs.

However, it is essential to remember that the central bank uses the repo rate as a tool to control inflation and not as a method to make home loan EMIs cheaper or more expensive.

The Bottom Line

If the repo rate is increased, it becomes more expensive for banks to borrow money, which will be passed on to customers through higher home loan EMIs. 

Therefore, if you plan to apply for a home loan, keeping an eye on changes in the repo rate is vital. You can use the home loan EMI calculator to check your home loan eligibility and monthly payments.

moon chalice Most Popular Blog News Site 2023

Previous Post

Why Casinos Are So Popular in Canada:

Next Post

India’s Best Crossover Cars And Their Car Insurance Cost

Next Post
India’s Best Crossover Cars And Their Car Insurance Cost

India’s Best Crossover Cars And Their Car Insurance Cost

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

What is CAE? Everything that You Should Know!

What is CAE? Everything that You Should Know!

9 months ago
Tips for your baby’s first winter

Tips for your baby’s first winter

3 months ago
Basic Knowledge You Need to Know for Hiring Sourcing Agent

Basic Knowledge You Need to Know for Hiring Sourcing Agent

5 months ago
5 Reasons to Try Meal Replacement Shakes

5 Reasons to Try Meal Replacement Shakes

4 months ago

BROWSE BY CATEGORIES

  • All
  • Apps
  • Art and style
  • Automotive
  • Benefits
  • Betting
  • Business
  • Cleaning
  • Construction
  • Digital Marketing
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Foods
  • Forex
  • Gadget
  • Games
  • Graphic design
  • Health
  • Home
  • Home Improvement
  • Instagram
  • Insurance
  • Law
  • Lifestyle
  • Loan
  • Management
  • News
  • Pet
  • Photography
  • Planning
  • Relationship
  • Social Media
  • Software
  • Sports
  • Tax
  • Tech
  • Tips and guide
  • Travel
  • Uncategory
  • Web developement
  • Website
  • Workout

POPULAR NEWS

  • 10.0.0.1 Piso WiFi, Pause Time, Logout – How to Know All Features!

    10.0.0.1 Piso WiFi, Pause Time, Logout – How to Know All Features!

    0 shares
    Share 0 Tweet 0
  • Fireboy and Watergirl Games Are Legend

    0 shares
    Share 0 Tweet 0
  • RocketPlay vs Zodiac Casino

    0 shares
    Share 0 Tweet 0
  • Naa Songs and ATOZmp3 – Telugu songs download service

    0 shares
    Share 0 Tweet 0
  • Starmusiq (starmusiq.vip) – Free Music Downloader For Android

    0 shares
    Share 0 Tweet 0
  • How To Play Online Slots In Canada

    0 shares
    Share 0 Tweet 0
  • Moviezwap 2022 Quality of movies at moviezwap org 2021

    0 shares
    Share 0 Tweet 0

About Us

Most Informative Business, Health, Sports, Fashion, Lifestyle, digital marketing, education News Headline 2022.

Email: [email protected]

Follow us on social media:

Recent News

DVD Movies Have Wide Range of Films for All, Buy Online Now

DVD Movies Have Wide Range of Films for All, Buy Online Now

by Saykat
March 24, 2023
0

Standing Up for Victims of Drunk Driving: A Guide to Finding the Right Legal Support

Standing Up for Victims of Drunk Driving: A Guide to Finding the Right Legal Support

by Saykat
March 23, 2023
0

What You Need to Know About Filing a Truck Accident Claim in Albuquerque

What You Need to Know About Filing a Truck Accident Claim in Albuquerque

by Saykat
March 23, 2023
0

Category

  • All
  • Apps
  • Art and style
  • Automotive
  • Benefits
  • Betting
  • Business
  • Cleaning
  • Construction
  • Digital Marketing
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Foods
  • Forex
  • Gadget
  • Games
  • Graphic design
  • Health
  • Home
  • Home Improvement
  • Instagram
  • Insurance
  • Law
  • Lifestyle
  • Loan
  • Management
  • News
  • Pet
  • Photography
  • Planning
  • Relationship
  • Social Media
  • Software
  • Sports
  • Tax
  • Tech
  • Tips and guide
  • Travel
  • Uncategory
  • Web developement
  • Website
  • Workout

Latest Posts

Know How To Make A Claim On Your Insurance Policy: A Step-By-Step Guide

Know How To Make A Claim On Your Insurance Policy: A Step-By-Step Guide

by Saykat
March 23, 2023
0

Tips and tricks to enhance the decor of your home garden

Tips and tricks to enhance the decor of your home garden

by Saykat
March 23, 2023
0

How to Make Your Own Pin Badge

How to Make Your Own Pin Badge

by Saykat
March 20, 2023
0

  • Home
  • Privacy Policy
  • Contact us

© Copyright 2022, All Rights Reserved, Powered By GPosting.com

No Result
View All Result
  • Home
  • News
  • Business
  • Sports
  • Lifestyle
  • Travel

© Copyright 2022, All Rights Reserved, Powered By GPosting.com