“If we take into consideration the current increase of 25 bps, the EMI for a 20-year home loan of Rs 70 lakh at 9.25 per cent was Rs 64,111. But when we factor in the 25 bps, the interest rate becomes 9.50 per cent, thereby increasing the EMI to Rs 65,249. The borrower of such a loan will have to pay an extra amount of Rs 1,138 each month. However, in the last three quarters, the repo rate has increased by 250 basis points. So, the EMI for a 20-year home loan taken in May 2022 of Rs 70 lakh at seven per cent was Rs 54,271. But when we factor in the 250-bps hike rate since May, the interest rate becomes 9.50 per cent, increasing the EMI to Rs 65,249. The borrower of such a loan will have to pay an extra amount of Rs 10, 978 each month,” says Swaminathan.