NOIDA-BASED JYOTIKA SHARMA bought her dream home last year. Property prices were low and the 30-year-old interior designer spared no expense for her dwelling—from a modular kitchen to state-of-the-art bathroom fittings to vibrant wall colours to the latest home appliances, she had it all. Her well-appointed home filled her heart with happiness. Now, it is giving her sleepless nights. Reason: Rising equated monthly instalments (EMIs).
Why are EMIs rising? The trigger was the Reserve Bank of India (RBI) increasing the repo rate by 0.9 per cent since May 4, 2022. Banks have passed on the entire rate hike to customers, amid a rise in borrowing costs. For her home loan, Sharma used to pay interest at 6.72 per cent when she bought her property; now she is paying 7.62 per cent. This has led to her home loan EMIs rising. “I was not expecting interest rates to move up so quickly. I am already [living] on a tight budget. The rise in EMIs
