Repo rate hikes hit home loan household budgets. Have EMIs peaked?

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If you are a home loan borrower, then RBI‘s rate hikes since May this year would have impacted either your loan EMIs or its tenure. Many are asking if home loan rates are close to peaking. Others are wondering if they should extend the tenure or find the money for higher EMIs. We explore how the rate increase has impacted borrowers and what they should do now.
Every time the RBI raises the repo rate, the banks pass on the hike to consumers in the form of a higher rate of interest. The borrowers in turn are left with the option of extending the tenure of their loans or increasing the payout of the equated monthly installments.
Vivek Iyer, National Leader, Grant Thornton Bharat says in an increasing interest rate scenario, home loan EMIs which are usually based on floating interest rates, will increase. This will stress the budgets of home loan owners and impact their discretionary…

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