Here is How Current MCLR rate Impact EMI Of Home Loan
Recently, RBI reduced the lending rates twice, thus bringing down from 6.50% to 6.0%. So if you have taken personal loan or home loan, then you don't have to pay high interest rate. In other words, EMI will be smaller than earlier. However, the cut also depends on the current MCLR rate Marginal Cost of Funds-based Lending Rate (MCLR).
Let us Check the How RBI Cut Rate Impacting your Home Loan-
The reduced repo rates translate into smaller EMI when the lender reduced home loan rates. So if the lender passes the rate cut, then the total interest rate you will get is 9% rate. Consider you have taken a loan of 30 lakh with the interest rate of 9.5%, then the EMI will be of Rs 29,933. In case, the rate comes down to 9%, then the will cost you to Rs 29,009. The best thing of this rate cut is you will save a lot of money.
Home loan interest rate literally takes your savings away. So this rate cut is really helpful.
The MCLR, on the other hand, specifies minimum rate under which the lender isn't allowed to lend. When the RBI cuts the rate, the lender need to cut down the repo rates.
In order to bring down the interest rate, do check with the lender if following the latest interest rate cut. Connect with the right lender who can lend loan under low interest rate.
Additional reads: Will New RBI Rate Cut Impact EMI Of Home Loan Borrowers?
June 13th, 2019