EMI for Home Loan Borrowers up by 26%
Sunday, February 18, 2007
DalalStreet.Biz has a calculation of how rising interest rates by the RBI has raised the EMIs of Indian home loan borrowers.Loan Amount: Rs 25,00,000
Inception Jan - 1 - 2004
Floating Rate @ inception - 7%
Tenure of the Loan - 20 years
EMI at inception Rs 19,400
Since Jan-1-2004, the Indian central bank, Reserve Bank of India has hiked the interest rates 6 times. The table below shows how your EMI has shot up by 26% in 3 years.
Jan-2005, Interest Rate 7.5% EMI Rs 20,100
July-2005, Interest Rate 8.0% EMI Rs 20,800
Jan-2006, Interest Rate 8.5% EMI Rs 21,600
April-2006, Interest Rate 9.0% EMI Rs 22,300
July-2006, Interest Rate 9.5% EMI Rs 23,000
Feb-2007, Interest Rate 10.5% EMI Rs 24,500
Plus their is a blood sucking Service Tax on the part of interest paid to the bank.
Sure, our Real Estate Sector is headed for a trouble now.
Labels: EMI, India Home Loans
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