Ever since banks have simplified the home loan process, it has become easier for crores of people to fulfill their dream of owning a home. If you have also taken a home loan from the bank, then it is very important for you to know this latest rule of the Reserve Bank of India (RBI), because this rule can help you save Rs 33 lakh on a home loan up to Rs 50 lakh. .
The way the Reserve Bank of India has increased the repo rate in the last one year, which has remained stable at 6.5 percent for a long time. Its worst impact has been on home loan takers only. Due to continuous increase in interest rates on their loans, the EMI burden has increased. Many times, to provide relief to the customers, banks do not increase the EMI of home loan, instead they increase the loan repayment period. This is where your long term loss happens…
Cheap EMI can cause big loss in long term
Actually, banks do not increase your EMI, but instead increase your tenure. Then you have to pay EMI for a long time. That means your loan amount remains the same but you have to pay the interest for a longer time than before. In this way your loss increases. Generally people take a home loan for a tenure of 20 years, but in order to keep the EMI low, people convert it to a tenure of 30 or 40 years.
In such a situation, if you take a home loan for 40 years, then according to the normal interest rate of 7 percent, its EMI comes to around Rs 600 per lakh. Whereas if you convert this loan after 30 years, then the EMI cost would increase marginally to Rs 665 per lakh, but your tenure gets reduced by 10 years.
What does the latest rule of RBI say?
Keeping in view the problems of the people, RBI has changed a rule related to this with effect from August 18, 2023. This new rule can save you up to Rs 33 lakh in interest on a loan amount of Rs 50 lakh. In fact, RBI has given guidelines to banks that they should not take the decision to extend the loan tenure on their own to avoid increasing EMI. Rather, give both options to the customers, in which they can increase the EMI if they wish.
Banks will have to inform their customers about the impact of possible EMI increase or tenure increase on their finances due to increase in interest. Not only this, banks should also give their customers the option to transfer the loan at a fixed interest rate. At the same time, the charges for converting interest rates from floating to fixed will have to be informed to them in advance.
Rs 33 lakh will be saved on loan of Rs 50 lakh
Now let us calculate how when you pay interest on a loan of Rs 50 lakh, you will save Rs 33 lakh. The principal amount of home loan is kept at Rs 50 lakh and the interest rate is fixed at 7 percent.
If you take this loan for 20 years, then the monthly EMI of the loan of Rs 50 lakh will be Rs 38,765. According to this EMI, your interest will be Rs 43.04 lakh.
Now let us assume that you have paid EMI for 3 years. This means that now your loan is left for 17 years. In this situation, you have paid about Rs 10.12 lakh in interest within 3 years, while your loan amount left is Rs 46.16 lakh.
Now suppose that after 3 years the loan interest rate increases to 9.25 percent, instead of increasing the tenure of the loan, you increase your EMI. In this situation your EMI for 17 years will be Rs 44,978. That means now you will pay interest of Rs 45.58 lakh in 17 years.
In this way, by combining 3 years and 17 years, the total interest you will pay in 20 years will be Rs 55.7 lakh. Now, what will happen if you extend your loan tenure instead of EMI?
If the loan EMI does not increase, your loan tenure with increased interest will be 321 months i.e. more than 26 years. Now after paying interest for 3 years, you will have to pay a total interest of Rs 78.4 lakh on the loan.
When you do not increase the EMI and extend the loan tenure, then you have to pay a total interest of Rs 88.52 lakh on a loan of Rs 50 lakh, which is Rs 33 lakh more than the interest of Rs 55.7 lakh charged on increasing the EMI. .
No comments:
Post a Comment