Prepay home loan to combat interest rate hike impact, say experts

If your pocket allows, opt for higher EMI, not a longer tenure

Secondary loan mkt may completely change India's banking landscape: Experts

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Buyers who plan to take a home loan won’t gain much by postponing, given that property prices are also on the upswing. High current rates have an upside

Sanjay Kumar Singh

4 min read Last Updated : Dec 07 2022 | 10:48 PM IST

The Reserve Bank of India (RBI) hiked the repo rate by 35 basis points (bps) on Wednesday. This benchmark rate has risen 225 bps between May and December this year. Home loan rates (for loan amount of Rs 30-75 lakh) are in the range of 8.25-10.5 per cent for most players. Borrowers, both existing and new, will feel the brunt of the latest rate hike soon, given that a large percentage of home loans are linked to an external benchmark, mostly the repo rate, nowadays.

In fact, in a communication on Wednesday, Bank of India said, "...this is to inform

Topics : Home Loan Interest rate hike Personal Finance