The Reserve Bank of India recently announced a hike in the REPO rate, taking it up to 6.5%. The decision was made to deal with the rising inflation. This increase in the REPO rate is eventually going to affect home loan borrowers. That’s because banks are going to increase the interest rates on home loans due to the high cost of borrowing. These higher interest rates, in turn, will result in an increase in monthly repayments, thereby making it difficult for people with multiple loans.
If you have a home loan with a floating rate of interest, then you might want to consider switching to a fixed rate home loan to reduce the impact of rising interest rates. A floating rate can make it difficult for you to make repayments on your home loan. NBFC home loan companies in India generally give you the option to choose between the two; pick one that suits your repayment profile the best.
Now would be the right time to seek financial advice from a professional who can better guide you on how to make your home loan repayments. That way, you’ll not only get the right direction but also insightful advice which will keep you in good stead as a home loan borrower.