How much can the EMI of your home-car loan be reduced after the RBI rate cut, here information.

If banks give the benefit of rate cut by RBI to customers, then you can know how much your EMI can be reduced here.

New Delhi: The Reserve Bank has cut the repo rate and reverse repo rate to give relief to people in Corona crisis. The repo rate has been reduced from 0.40 per cent to 4 per cent and the reverse repo rate has been reduced from 3.75 per cent to 3.35 per cent. Now if banks give the benefit of this rate cut to the customers then their loans can be cheap and EMI can be reduced.

If banks give the benefit of rate cut to customers, then the EMI of your home loan, car loan, personal loan can be reduced. Here, through an example, you can know how much your loan EMI is going to decrease.

Home loan will benefit

If banks will give you the benefit of 0.4% reduction, then there can be a good reduction in the EMI of your home loan. To understand this with an example,

Suppose you have taken a home loan of Rs 35 lakh for 20 years, on which the current SBI interest rate is 7.35 percent. Its monthly EMI sits at Rs 27876 and the total interest on this loan is sitting at Rs 31,90,148, then after reducing the rates, the interest will be 6.95 per cent instead of 7.35 per cent. In this way, the total interest for your 20-year loan of Rs 35 lakh will be Rs 29,87,324 and your EMI will be reduced to Rs 27031, ie your EMI will be reduced by Rs 845 per month and the total interest will also be around 2.02. Lakh rupees will be reduced.

How much will be the benefit on a car loan

The current interest rates of car loans are between 8.55 per cent to 10.15 per cent. Different banks have different auto loan interest rates and if banks benefit from the 0.40 per cent rate cut of RBI, then their loans can also be 0.4 per cent cheaper.