Home Loan Repayment: What Longer Tenure Could Mean For Mortgage Borrowers?

Reserve Bank of India (RBI)’s recent decision of  hike in the repo rate has impacted the home loan borrowers 

an analysis by BankBazaar reported that the home loan borrowers may lose out

home loan borrowers who took a Rs 50 lakh loan for 20 years at 7 per cent have seen the rate increase to 8.9 per cent

 if home loan borrowers pay their EMIs for an additional 184 months, the interest outflow will be about Rs 71 lakh

 if the total loan repayment period reaches the age at which the borrower is expected to retire, in that case, banks will not increase the tenure anymore

if the loan amount is planned in a way that a borrower is supposed to repay till the age of 60 or their retirement age, a hike in these rates would mean higher EMIs

banks are in a dire need to work around a solution