RBI on Wednesday suddenly increased the repo rate by 40 basis points and the cash reserve ratio by 50 basis points.
Home Loan and FD Interest Rate: The effect of increasing the repo rate of the Reserve Bank (RBI) has started showing. The RBI on Wednesday suddenly increased the repo rate by 40 basis points and the cash reserve ratio by 50 basis points. Since then, banks have also started increasing interest on loans and interest on FDs.
Where on one hand customers are getting benefit from increasing interest on FD. On the other hand, banks have increased the EMI by making the loan expensive. So far Bank of Baroda and ICICI Bank have made loans expensive. 5 banks like Bandhan Bank, Kotak Mahindra Bank, Jana Small Finance Bank, Bank of Baroda and ICICI have increased the interest on FD.
ICICI Bank hikes I-EBLR
Private sector bank ICICI said in a statement released on its website that the bank has increased the Actual Benchmark Lending Rate (I-EBLR) in accordance with the policy repo rate of RBI. The bank has increased it by 40 basis points. Now it has increased to 8.10 percent. These rates have come into effect from May 4.
Both these banks have increased the interest rates (external benchmark linked loan interest rates – EBLR) linked to the repo rate. Doing this by both the banks will make all types of loans including home, auto and personal loans expensive. This will have a direct impact on your EMI.
BOI also made loans expensive
Bank of India has also increased the Repo Linked Lending Rate (BRLLR) for all types of retail loans by 40 basis points to 6.90 per cent. Now the increased rates of Bank of Baroda have come into effect from 5th May i.e. today.
These banks have already made loans expensive
Yes Bank also announced to make retail loan home loan, car loan, personal loan expensive. Yes Bank has reduced MCLR to 6.85 percent. The one month MCLR is 7.30 per cent. The three-month MCLR is 7.45 percent while the six-month MCLR is 8.25 percent.
According to the Yes Bank website, the MCLR for a period of one year is 8.60 percent. State Bank of India (SBI), Bank of Baroda, Axis Bank and Kotak Mahindra Bank have increased the MCLR rate last month.
Kotak increased interest on FD
Kotak Mahindra Bank said in a statement that it has decided to increase the interest rate on fixed deposits of up to 390 days and 23 months by 0.30 per cent and 0.35 per cent, respectively.
Similarly, Bandhan Bank has announced an interest rate hike of 0.50 per cent on fixed deposits with tenures ranging from one year to two years. Analysts predict that in the coming days many more banks may also announce a hike in interest rates on their loans and FDs.
