Impact on Repo Rate revision on Home Loan!

[Finchamp!]

Hello Technofinians!

I have a Home Loan from Kotak Bank (KMBL) in which whenever the repo rate changes, KMBL, instead of revising my EMI appropriately, keeps the EMI constant and varies the tenure. I have done the math and it is clear that I would end up paying much larger interest this way. I have requested KMBL to change the EMI, and not the term, upon repo rate revision, but they say that this cannot be changed and it is standard in all the banks. Is this really so? Has anyone changed from term adjustment to EMI adjustment in case of repo rate revision? If yes, please share your experience.

 

[Karthik24]

I am not sure if the EMI can be changed based on the changes in interest rate automatically but however you can request the EMI to be increased or decreased... I had done it with sbi