RBI hikes repo rate by 35 bps-- How much will you have to pay for home loan now? Check EMI calculator here

New Delhi: To control inflation, in today's Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) increased benchmark interest rates by 35 basis points, bringing the overall repo rate to 6.25 percent, despite hiking the rates in four tranches earlier. As a result, the interest rate levied on loans will increase. The largest banking regulator previously increased the repo rate to 5.9 percent in an effort to combat the inflationary crisis. Following suit, loan interest rates are expected to increase as a result of the ongoing attempt to tighten policy.

Continue reading to find out the result of this move on home loan interest rates. Recently, large housing lenders have lowered house loan rates in an environment of rising interest rates in an effort to maintain the momentum of demand, which is being influenced by growing real estate prices, greater borrowing costs, and inflationary pressures. (Also Read: DEEP and AMAZING SURVIVAL story of engineering DROPOUT will melt your heart; Anand Mahindra thrilled by THIS story)

Following the second last 50 bps increase in the repo rate to 5.9 percent, many lenders have lowered the rates on their home loans by 15 to 30 basis points (bps) since mid-October. According to these lenders, the exceptional rates are being provided as part of exclusive holiday offers to high-caliber consumers with good credit ratings in order to maintain affordability during the peak season for home purchases and sustain the strong demand for housing loans. (Also Read: RBI lowers GDP growth projection to 6.8 for FY23)

After the festive offer, financial institutions make the loan costlier. As per the RBI's latest move, the lending rate will also go up. According to the HDFC house loan calculator, the monthly payment or EMI of Rs 25 lakh for 20 years will be around Rs 22,093 per month, if a home loan of Rs 25 lakh is taken out at the rate of 8.75 percent.