#Kolkata: The Reserve Bank of India (RBI) in short has increased the repo rate once again. As a result, the EMIs of various types of loans are going to increase. This is very problematic for the borrowers. This time the Reserve Bank of India has increased the repo rate by 0.50 percent. Due to this, starting from home loan, the EMI amount of various types of loans will increase. Because this will directly increase the loan taken from the bank by 0.50 percent. Which will have direct impact on EMI. This increase in repo rate will cause problems for the earlier borrowers as well as the new borrowers. As a result, the EMI will increase a lot in one blow. But there are some ways to avoid it. Let’s take a look at that way.
In case of old loans –
Prepayment is the best option for those who have already taken home loan or car loan. By making pre-payment, the EMI burden will be greatly reduced. Almost all government banks and private banks offer pre-payment facility for loans. If pre-paid, the amount is directly added to the principal amount of the loan. As a result, the principal of the loan is greatly reduced. Which directly affects the loan interest. As a result, the interest rate is much lower, so it does not affect the EMI. This results in very low EMIs.
In case of new loans –
If planning to take a new home loan or auto loan, higher down payment is required at the time of taking the loan. In the case of home loan, if you pay one to two lakh rupees more, the monthly EMI will be much less. If someone takes a loan of Rs 30 lakh at 7.50% interest rate for 20 years, then he has to pay an EMI of Rs 24,168 per month. If someone makes a down payment of Tk 2 lakh then he has to pay an EMI of Tk 22,557 on Tk 28 lakh. As a result, 1611 rupees will be saved per month. So about 3.86 lakh rupees will be saved till the loan is fully repaid.
Loan tenure should be extended –
The best way to reduce the EMI burden is to extend the loan tenure. Extending the loan tenure will greatly reduce the monthly EMI burden. That is, if someone borrows Tk 30 lakh at 7.5 percent interest rate for 20 years, then he has to pay an EMI of Tk 24,168 per month. That means he will have to pay a total of 28,00,271 rupees in 20 years.
But if this loan is extended by five years for 25 years, then the monthly EMI will be Rs. 22,170. That means you have to pay Tk 2000 less EMI every month. But the total amount to be paid is 36,50,921. 8.50 lakhs more will be paid if the time is extended.
Banks can be approached to reduce the interest rate –
If customers have good transaction record and very good civil i.e. credit score then the interest rate can be reduced by talking to the bank. Many times the interest rate is reduced by the bank due to its good track record. That is, if the bank’s interest rate is reduced by 0.25 percent, then the interest rate will become 7.25 percent. That is, the EMI on a 30 lakh Tk loan taken for 20 years is Tk 23,711 instead of Tk 24,168.
Loan can be transferred to another bank –
If the bank does not want to reduce the interest rate then the loan can be transferred to another bank. In this case, if the bank from which the customer has taken the home loan is charging a higher rate of interest, the loan can be transferred to another bank. As a result, customers’ EMIs will come down significantly in one fell swoop. If the new bank offers a loan at a lower interest rate of 0.50 per cent, the EMI on a loan of Rs 30 lakh at 7.50 per cent for 20 years will be Rs 23,259. Which was 24,168 taka that means 909 taka less per month. 10,908 rupees per year will be less.