BT Buzz: How soon will your EMIs fall? Your home loan type will decide
While some borrowers get benefits of repo rate cuts quickly, others have to wait longer depending upon the tenure and regime of their loan
- Jun 6, 2020,
- Updated Jun 8, 2020 3:50 PM IST
During the coronavirus-led pandemic, when a large number of people are facing economic hardships, any good news is a precious commodity. Fall in interest rates offers a much needed respite to borrowers, especially home loan borrowers. On one hand economic challenges are troubling them, on the other they are sitting on a huge outstanding debt with long years of repayment left. In such a scenario, even a marginal drop in interest rate results in lakhs of savings during the entire tenure of the loan. However, not all home loan borrowers get the benefit - simultaneously and equally. The reduction benefit depends upon the kind of interest rate regime the home loan is into.
During the coronavirus-led pandemic, when a large number of people are facing economic hardships, any good news is a precious commodity. Fall in interest rates offers a much needed respite to borrowers, especially home loan borrowers. On one hand economic challenges are troubling them, on the other they are sitting on a huge outstanding debt with long years of repayment left. In such a scenario, even a marginal drop in interest rate results in lakhs of savings during the entire tenure of the loan. However, not all home loan borrowers get the benefit - simultaneously and equally. The reduction benefit depends upon the kind of interest rate regime the home loan is into.