RBI increased interest rates by 0.35%: On a loan of 30 lakhs for 20 years, about Rs 1.55 lakhs more needs to be paid

Worried about rising inflation, the Reserve Bank of India (RBI) has increased the repo rate by 0.35%. Due to this the repo rate has increased from 5.90% to 6.25%. That means everything from home loans to auto and personal loans will become costlier and you will have to pay more EMI.

The meeting of the Monetary Policy Committee was going on from December 5 to decide on the interest rates. RBI Governor Shaktikanta Das made the announcement related to interest rates in a press conference on Wednesday. Earlier in the meeting held in September, the interest rates were increased from 5.40% to 5.90%.

Monetary policy meets every two months. The first meeting of this financial year was held in April. Then RBI kept the repo rate constant at 4%. But the RBI had increased the repo rate by 0.40% to 4.40% by calling an emergency meeting on 2 and 3 May.

This change in the repo rate took place after 22 May 2020. After this, in the meeting held from 6 to 8 June, the repo rate was increased by 0.50%. This increased the repo rate from 4.40% to 4.90%. Then in August, it increased by 0.50%, taking it to 5.40%. Interest rates went up to 5.90% in September. Now the interest rates have reached 6.25%.