10% salary hike is not sufficient to cover the impact of home loan EMI rise post RBI repo rate hikes

https://img.etimg.com/photo/96048584.cmsConsidering the impact of the multiple repo rate hikes this year to the tune of 2.25%, the interest rate for home loan borrower will typically rise from 7% in April this year to 9.25% in January 2023 especially for the repo rate linked loans. For a Rs 40 lakh home loan taken for 20 years, these interest hikes will push the EMI from Rs 31,012 to Rs 36,485. Had the salary remained stagnant, the parentage of salary needed to cover the EMI will rise from 50% to 59%. Even a good salary hike of 10% is not good enough.

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