Most people buy a house or a car by taking a loan. In such a situation, the interest rate is very important. Based on that, the EMI is fixed which has to be paid every month. Many times if an EMI is missed due to some reason, then penalty has to be paid while filling the next installment.
New Delhi. Most people buy a home loan or a car loan by taking a loan. In such a situation, the interest rate is very important. Based on that, the EMI is fixed which has to be paid every month. Many times if an EMI is missed due to some reason, then penalty has to be paid while filling the next installment. Now the news is that the interest rate of the loan may increase. Let us know that recently the interest rate of SBI home loan customers has increased by a quarter percent. SBI has already withdrawn its home loan scheme with low interest rate and in such a situation, the interest rates have come down to the level before this scheme. Due to this, the interest rates have come down to the earlier level.
Other banks may also increase the interest rate
According to the news of ET, after SBI, other banks can also declare an increase in interest rates. According to Naveen Kukreja, CEO and Co-founder of Paisa Bazaar, the withdrawal of the special scheme of home loan will be a difference of only 25 basis points in the interest rate, but it will have a wide impact, as other banks can also take such steps. Home loan major HDFC has increased the interest rate on its Fixed Deposit (FD) scheme by 10-25 basis points after 29 months. In such a situation, the cost of his fund has increased, which will also have a direct impact on the interest rate of the loan. This will directly affect the EMI of your loan.
Learn what new customers should do?
When interest rates are increasing, then it is beneficial to take a loan at a fixed rate. According to Bank Market CEO Adil Shetty, interest rates are increasing, so it would be beneficial to take a car, home or other loan at a fixed rate. The reason for this is that your interest rate remains low in this. New customers of home loans do not have much option in this matter, because only a few institutions offer home loans at a fixed rate.
Learn what existing customers should do?
Banks usually give customers the option of extending the loan term or EMI when interest rates rise. However, not all customers get the option to extend the loan period. According to experts, banks generally do not allow the loan to extend beyond the actual term or the retirement period of the customer, so many customers do not have another option except to keep the EMI period constant by making an upfront payment. If your monthly income allows, then you should not change the loan period. You should ask the bank to increase the EMI. With this, the total amount of your interest will also not increase.
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