Home Loan and Vehicle Loan EMIs May Become Costlier!

The ongoing tensions in West Asia are slowly beginning to impact India’s economy, with fuel prices already witnessing an upward trend. Economic experts have expressed concern that the financial burden on common citizens could increase significantly by the time of the Diwali festive season if inflation continues to rise.

To control inflation in the market, the Reserve Bank of India (RBI) may consider increasing key interest rates by Diwali, according to analysts. If repo-linked interest rates are revised upward, EMIs on home loans, vehicle loans, and personal loans are likely to increase sharply, putting additional pressure on middle-class households and borrowers across the country.