Loan Rate after Repo Rate Hike: Shortly before and after the increase in the repo rate, loans have become expensive in many banks / financial institutions.
Loan Rate after Repo Rate Hike: The era of cheap loans is over. Ever since the central bank RBI has increased the repo rate, many banks have also made their loans expensive. Including ICICI Bank, Bank of Baroda (BOB), Punjab National Bank (PNB), Bank of India (BOI), Indian Bank, Canara Bank and HDFC, HDFC Bank Many banks and financial institutions have made loans expensive.
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After increasing the policy rates, the loan has become expensive here
- After the announcement of RBI, private sector bank ICICI Bank increased the external benchmark lending rate (EBLR) related to repo from 8.10 percent to 8.60 percent.
- The day (June 8) RBI reduced the repo rate to 4.90 per cent, the state-owned Punjab National Bank (PNB) increased the repo-linked lending rate (RLLR) from 6.90 per cent to 7.40 per cent.
- Bank of Baroda (BOB) has increased the one-year MCLR to 7.50 per cent with effect from June 12.
Taking loan from Bank of Baroda will be expensive, know when the new rates will be applicable
- Bank of India has increased the repo rate linked loan from 7.25 percent to 7.75 percent.
Taking loans from PNB and Bank of India after the increase in repo rate is expensive, know when the new rates will be applicable
- The one-year MCLR in Union Bank of India has increased to 7.45 per cent with effect from June 11.
Some banks-financial institutions have already increased
In view of the possibility of a hike in the repo rate, some banks and financial institutions had already made loans expensive.
- Private sector HDFC had increased the retail prime lending rate on housing loans by 0.05 per cent before the repo rate hike. After the increase in the repo rate, HDFC once again increased it by 0.50 percent on June 10.
- HDFC Bank increased the MCLR by 0.35 percent on June 7. After this decision, the one-year MCLR in the bank became 7.85 percent.
Taking loan from HDFC Bank has become expensive, increased interest rates are applicable from today
- Canara Bank on June 7 increased the one-year MCLR from 7.35 per cent to 7.40 per cent.
- PNB made the loan costlier from June 1 and then decided to increase the rate on June 8 as well.
PNB Rate Hike: EMI burden increased on common people, PNB made loans expensive
Why does the loan become expensive after the increase in the repo rate?
When banks need money for a short period of time, the rate at which RBI lends them is the repo rate. In such a situation, when the repo rate increases, it becomes expensive for banks to take loans from RBI. After this, when banks give loans to their customers, they charge more interest on it too. RBI had increased the benchmark repo rate by 0.50 per cent to 4.90 per cent with immediate effect in the MPC to be held every two months. Earlier in May, RBI had suddenly increased the repo rate by 0.40 percent, that is, the policy rate has increased by 0.90 percent twice.