Page 2 - Emi

RBI's interest rate decision pragmatic, to keep EMIs stable, say experts

The RBI's decision to keep interest rates unchanged is pragmatic and on the expected lines, and ensures that EMIs on home and consumer loans remain stable, experts said on Thursday. The Reserve Bank of India (RBI) left its key policy rates unchanged for a third straight meeting but signalled tighter policy if food prices drive inflation higher. The monetary policy committee (MPC), which has three members from the central bank and a similar number of external members, held the benchmark repurchase rate (repo) at 6.50 per cent in a unanimous decision. "As expected, the RBI has taken the pragmatic approach and kept the policy repo rate unchanged at 6.5%. The central bank has reiterated its commitment to bring inflation within the target band while continuing its focus on supporting growth," said EEPC India Chairman Arun Kumar Garodia. While exporters are exploring new markets, the fiscal and monetary support remains crucial for the sector, which is key to generating jobs and earning .

Home loan EMI in affordable housing category up 20% in last 2 yrs: Anarock

Home loan EMIs for customers who bought properties less than Rs 40 lakh have gone up 20 per cent in the last two years due to a rise in mortgage rate, according to real estate consultant Anarock. The consultant pointed out that the affordable housing segment suffered the most during the COVID pandemic and has not recovered in the last two years. Anarock said that affordable home buyers have been paying almost 20 per cent more in their EMIs over the last two years. The floating interest rates for home loans up to Rs 30 lakh have risen from 6.7 per cent in mid-2021 to nearly 9.15 per cent now. "Home loan borrowers who were paying an EMI of approx. Rs 22,700 in July 2021 are now paying about Rs 27,300 today -- an increase of approx. Rs 4,600 per month. This 20 per cent increase in the EMI has resulted in a jump of approx. Rs 11 lakh in the overall interest component - from approx. Rs 24.5 lakh interest payable in 2021 to approx. Rs 35.5 lakh today," Anarock Head-Research Prashant Thaku

One in every 10 retail borrowers missing monthly payments: RBI report

According to RBI's financial stability report, the total of SMA-0, SMA-1 and SMA-2 in the retail advances in the public sector banks was 9.4% as of March 31

IKEA, HDFC to launch financing options to make products more affordable

The scheme offers consumers EMI options with a mix of no-cost and low-cost solutions ranging from three to 30 months

Budget houses go out of budget; high interest rates and EMIs pinch buyers

Higher EMIs and mortgage rates pinch buyers; segment's share of overall housing sales likely decline in FY23, FY24

ICICI Bank to offer EMI facility for UPI transactions above Rs 10,000

Customers can pay transaction amount above Rs 10,000 in the form of instalments in three, six, or nine months

ICICI Bank to offer EMI facility for UPI transactions above Rs 10,000

Customers can pay transaction amount above Rs 10,000 in the form of instalments in three, six, or nine months

Make part-prepayments to cut home loan tenor, but don't use retirement fund

Another option is to switch to another lender who is willing to refinance at a lower rate

Consent must for fixed to floating loan shift

When the loan agreement was submitted in the revision proceedings, it revealed the interest rate column, which should have mentioned fixed or floating, had been left blank

SBI loans to get costlier as bank hikes key lending rate; Details here

Following the RBI MPC's repo rate hike earlier this month, many banks like Bank of Baroda, Bank of India, and Punjab National Bank have also hiked their key lending rates

Expense list to loan tenure: How to stay ahead of rising inflation

Maintain adequate allocation for equities in long-term portfolios for financial security

How have the home loan EMIs changed since RBI's repo rate hike in May 2022?

The deposit and lending rates are directly proportional to the repo rate, and they generally go up if the benchmark rate is hiked

Ahmedabad, Kolkata & Pune most affordable housing markets in 2022: Report

Despite showing the maximum improvement since 2011, Mumbai was the least affordable city in India in 2022: Knight Frank

Sum total of all your EMIs should not exceed 40% of your net income

Make sure buying a house will not lead to compromises on other crucial financial goals

A Rs 5,000 cr opportunity: Hinterland is Pine Labs' BNPL money-spinner

These include products like smartphones, wearables, large appliances, smart televisions, and washing machines

Pine Labs sees huge demand for its buy-now-pay-later service in hinterlands

The fintech unicorn expects to process BNPL transactions worth Rs 5,000 crore this month as an increasing number of customers in small towns are buying products on EMI this festive season

Bengaluru fourth most expensive real estate market in India: Knight Frank

Bengaluru's affordable housing market has become more costly due to the 50 bps hike in the repo rate by the RBI

Scrutinise your no-cost EMI offers for hidden charges, say experts

There could also be a third scenario where the interest cost is added to the product price and then the higher price is converted into EMIs

Loan for 20 years, EMIs for 24: RBI rate hikes leave borrowers in a fix

If a person took a 20-year home loan of Rs 50 lakh in April 2019, their number of EMIs will now be 60 more than the original because of the recent repo rate hikes

Prepay home loan to tackle 190-bps rise in repo rate since May: Experts

If you don't have a surplus, opt for higher EMI rather than longer tenor