On a loan with tenure of 20 years, interest rate hike from 8.5 % to 11 % increases the EMI on every 1 lac of loan by Rs 164. This may not seem much, but given that that the average home loan size in recent years has increased sharply, the increase in overall EMI can be big enough to burn a puncture in the pocket.

On a loan of Rs 30 lac, on the above terms, the EMI would have improved by Rs 4,931, a formidable 19 % rise.

Use these tactics for getting out of home loan emi burden

• Increase your Loan Tenure
• Refinance your home loan
• Pre-payment of home loan

Interest rates move with cycles, and there are indications that the current upward movement may be close to its peak.

In fact, the RBI while raising the policy rate in October has signalled that further hikes may not be in the offing. At this point, borrowers should also avoid switching from floating rate loans to fixed rate ones. Holding on to patience now may be a wise move. After all, this is not the first time that interest rates have shot up sharply. Calculate your loan emi with emi calculator.

The last decade has seen home loan rates touch highs of around 13 % before falling to lows of 7 %.