Globally, nearly a decade of high inflation has led major central banks to raise interest rates sharply this year to keep price pressures in check.
India is no exception. At its latest meeting, the RBI raised its main repo rate by 35 basis points to 6.25%, the highest level since April 2019.
Previously, interest rates were raised by 40 basis points in May, and by 50 basis points each in June, August and September, and it was the fifth consecutive rate hike recently.
While the rate hike in December is smaller, it will still have a major negative impact on household budgets, which are already thinned by higher borrowing spending and higher costs of almost everything.
As in recent months, Indian banks have been quick to pass on RBI rate hikes to consumers, increasing loan costs and equating monthly installments (EMIs).
So here’s how you can calculate your loan cost in this rising interest rate scenario.
Regardless of requirements, use NDTV’s free and easy-to-use online calculator Know Your Loan Costs and EMIs NDTV Tools Page.
If someone is planning to buy a new home, then NDTV Home Loan Calculator Find out about your monthly expenses with just a few clicks.
same, Personal Loan Calculator with car loan calculator Can help a person pay for a loan.
Factors to keep in mind before applying for a loan during a rising interest rate cycle:
As you prepare to apply for a loan, there are a few things to keep in mind. You will need to determine equal monthly installments based on your financial situation and ability to repay the loan (EMI). Here are some things to consider:
What is the loan term:
Lenders usually increase repayment terms or EMI, and in some cases, both when interest rates rise. Therefore, the amount of EMI will change.
Therefore, considering the term of the loan is another important consideration that can affect how much you owe.
It is best to understand and compare the rates offered by different lenders to ensure you are getting the most competitive borrowing costs.Therefore, you can use NDTV Free Online Calculator easily.
What is the loan amount:
The total amount of loan a person wishes to borrow plays an important role in the repayment amount, including interest.
How much to borrow is a common dilemma people face before applying for a loan, as lenders offer a variety of programs through the end of the year, including larger loans.
No matter what kind of loan you’re planning to get—secured or unsecured upfront—it’s crucial that you understand how much you’ll need to pay each month before you apply.In this case, a EMI Calculator Can be of great use.
use NDTV Free Online Calculator Knowing the repayment amount including EMIs to ease your financial burden can help you in this decision.
this NDTV Tools Pages offer more than just financial calculators. The NDTV tools page provides a variety of online tools to handle common, challenging activities such as estimating loan EMIs, monitoring fuel prices, etc.
See also: Love road trips?Here’s How to Calculate Fuel Costs
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