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People often resort to loans to meet their household needs. 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 with this rule you can save up to Rs 33 lakh on home loan. Rs 50 lakh
Let us tell you that last year the Reserve Bank of India had increased the repo rate, which has been 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, but instead increase the loan repayment period. This is where your long term damage happens…
Big loss due to long term EMI
Let us tell you that banks do not increase your EMI, but increase the tenure of your loan. Then you will have to pay EMI for a long time. That means your loan amount will remain the same but you will have to pay the interest for a longer period than before. In this way your loss increases. Usually people take home loan for a tenure of 20 years, but to keep the EMI low, people convert it to a tenure of 30 or 40 years.
If you take a home loan for a tenure of 40 years, then at a 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 will increase marginally to Rs 665 per lakh, but your tenure gets reduced by 10 years.
Know what the new rule of RBI says?
Keeping in mind the problems of the people, RBI has changed a rule related to this with effect from August 18, 2023. With this new rule, you can save interest up to Rs 33 lakh on a loan 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 what impact the possible increase in EMIs or increase in interest due to increase in tenure will have on their finances. Not only this, banks should also give their customers the option to transfer the loan at a fixed interest rate. At the same time, they will also have to be informed in advance about the charges for changing the interest rates from floating to fixed.
Now Rs 33 lakh will be saved on loan of Rs 50 lakh
Now know the complete calculation that when you pay interest on a loan of Rs 50 lakh, you will save Rs 33 lakh. The principal amount of home loan has been kept at Rs 50 lakh and the interest rate has been fixed at 7 percent.
-If you take this loan for 20 years, then the monthly EMI of a loan of Rs 50 lakh will be Rs 38,765. According to this EMI, your interest will be Rs 43.04 lakh.
-Now suppose you have paid EMI for 3 years. This means that now your loan is remaining for 17 years. In this case, you have paid approximately Rs 10.12 lakh in interest within 3 years, while your loan amount is left at Rs 46.16 lakh.
Now suppose that after 3 years the loan interest rate increases to 9.25 percent, then instead of increasing the loan tenure, you increase your EMI. In this case, your EMI for 17 years will be Rs 44,978. That means now you will have to pay interest of Rs 45.58 lakh in 17 years.
-In this way, you will have to pay a total interest of Rs 55.7 lakh in 20 years including 3 years and 17 years. Now what if you extend your loan tenure instead of EMI?
If the EMI of the loan does not increase then with the increased interest your loan tenure will be more than 321 months i.e. 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 do not extend the loan tenure, then you will 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 extension. EMI. The cost is more than Rs.