Home Loan: Age will pass in repaying the loan… Home loan was taken for 20 years, now it will have to be repaid for 31 years – 20 year tenure home loan will take 31 years to repay know detail here
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When home loans were cheap, people took advantage of this to buy houses or flats. But now they are finding it difficult to pay the installments. In less than a year, the home loan interest rate has increased from 6.7 per cent to over 9.25 per cent. If someone had taken an interest of Rs 50 lakh in April 2019 at the rate of 6.7 per cent, then his loan would have ended in March 2039. But now its rate has reached 9.25 percent. Accordingly, his home loan will end in November 2050, which means he will have to pay 132 more installments than the original. That means he will have to pay 11 years more installments than the original tenure.
How the tenure increased
To control rising inflation, the RBI had increased the repo rate in May last year. Due to this, the home loan interest increased from 6.7 percent to 7.1 percent. This added an additional 12 months of installments to the tenure of 20 years. The central bank again increased the repo rate in June and home loan interest reached 7.6 per cent. This added an additional 29 installments to the original tenure. After the August hike, the number of additional installments reached 49. The central bank again increased the repo rate in October. With this, your tenure of 20 years became 25 years. Means 60 installments were unnecessarily added.
| month | Home Loan Rate (%) | EMI paid | outstanding loan amount | When will the loan end | revised tenure | Increased EMI installment |
| April, 2019 | 6.7 | 0 | 50 lakh rupees | March 2039 | , | , |
| May 2022 | 7.1 | 37 | Rs 45.93 lakh | March 2040 | 17 years 11 months | 12 |
| June 2022 | 7.6 | 38 | Rs 45.84 lakh | August 2042 | 19 years three months | 29 |
| August 2022 | 8.1 | 40 | Rs 45.67 lakh | April 2043 | 20 years nine months | 49 |
| October 2022 | 8.3 | 42 | Rs 45.46 lakh | March 2044 | 21 years 6 months | 60 |
| January 2022 | 8.65 | 45 | Rs 45.26 lakh | September 2044 | 23 years | 66 |
| March 2022 | 9.25 | 48 | Rs 45.10 lakh | November 2050 | 27 years | 132 |
Source: ET Wealth
After this, RBI increased the repo rate for the fifth consecutive time in January this year. Due to this banks also increased the interest on home loans. This adds 66 more installments to your original tenure. The central bank again hiked the repo rate in March. With this, your original tenure has increased from 20 years to 31 years. That is, your loan which was to end in March 2039, will now have to be repaid by November 2050.
EMI of your loan is going to increase, be ready for increase in interest rates, big decision will come this week
how to reduce burden
Experts say that whenever there is an increase in the interest rate, banks usually do not increase your installment. They don’t make any changes in the EMIs that accrue every month and secretly extend the loan tenure. This is their default response. However, you can increase your installment by going to the bank. If you choose this option, it will increase your monthly installment. But your principal amount will be lower and the total interest you pay on the loan will also be lower. With this, your loan will end soon.
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