Planyourworld Effect of Interest Rate Hike On Home Loan | PlanYourWorld
Sahi Kharido

What is Direct Mutual Fund

  • 1.5% Extra Return on your Scheme Year on Year
  • Add Agent commission in your return year on year
  • Up to 30% Extra Value on Maturity of Your SIP in Regular Plan
  • Better College for Kid
  • Early Retirement
  • Better Life Style

Add Agent Commission in portfolio

Get 25% More Maturity

SIP−Direct vs Regular

Direct Mutual Fund Account

Effect Of Interest Rate Increase On Your Home Loan

 Administrator  02-09-2017   04-12-2017

 Effect Of Interest Rate Increase On Your Home Loan 

Whenever there is an increase in your home loan interest, banks keep the email same and increase the term of the loan. Here is an example of the loan of Rs. 30 lacs for 20 years @ 9.9% & EMI of Rs. 28752. What will be the effect of a rate increase of 2% on this loan?

Rate Increase of Home Loan .5% .75% 1.00% 1.50% 2%
Increase of Loan Term 2.73 years 4.72 years 7.55 years 27.09 years Never End
Total Loan Term 22.73 years 24.72 years 27.55 years 47.1 years Monthly interest is more than EMI

This situation of uncontrolled loan can be avoided by simply monitoring your loan rate and its effect on your loan outstanding. Generally, home loan institutions don?t keep you informed regularly, they increase the rate without informing you and when there is a reduction in interest, they wait for your letter. If your loan is more than 2 years old, there are possibilities that your rate has increased by nearly 2%. In that case, your monthly EMI may not be sufficient to cover the monthly interest on your loan and the outstanding loan may start increasing. Check your existing interest rates and take necessary steps to reduce your rate.

You can keep your loans in control by updating your loan details on Planyourworld, this will give you customized alerts so that you can protect your home and you don?t work for bank only.

Planyourworld Online Direct Mutual Fund Account

How it works

  • Register
  • Open Account

Fund Selection

  • Category by List of Mutual Fund Schemes

Customer Care Support
 +918468020019 (10 AM to 6PM)

  • Change exiting plans to Direct
  • Track achievement of your objectives
  • Review performance
  • Manage Scheme

Introductory Price

Introductory Price
500 + GST (Yearly)

 Comment Here

Check Your MF Plan

95% Investors have not invested in direct plans


1.Have you invested through agent/broker/bank?
Yes No
2.Have you paid charges for making Investment
Yes No