Just days after Reserve Bank of India (RBI) hiked the repo rate, country’s largest lender State Bank of India (SBI), raised the minimum interest rates for home loans to 7.55 per cent effective June 15.
SBI’s move followed a 50 basis points hike in repo rate to 4.90 per cent by RBI on June 8. In May also RBI had hiked repo rate by 40 basis points.
SBI also raised its external benchmark-based lending rate (EBLR) to a minimum of 7.55 per cent effective from today as compared to 7.05 per cent earlier, as per the bank’s website.
While this means that home as well as other loans are going to get dearer, as more and more banks are likely to follow suit, let us see which financial institutions have raised their key rates.
Just a day after RBI raised the repo rates, ICICI Bank on June 9 increased its external benchmark lending rate by 50 bps to 8.60 per cent.
“ICICI Bank External Benchmark Lending Rate” (I-EBLR) is referenced to RBI Policy Repo Rate with a mark-up over Repo Rate. I-EBLR is 8.60 per cent p.a.p.m. effective June 8, 2022,” a statement by ICICI Bank on June 9 said.
Housing Development Finance Corporation (HDFC)
Mortgage lender HDFC also raised lending rates by 50 basis points last week. Its new lending rate became effective from June 10.
“HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 50 basis points, with effect from June 10, 2022,” it had said in a regulatory filing.
Bank of Baroda
Bank of Baroda too hiked its interest rates on various loans linked with Baroda repo-linked lending rate (BRLLR), which became effective from June 9.
“For retail loans applicable BRLLR is 7.40 per cent w.e.f. June 9, 2022 (Current RBI repo rate: 4.90 per cent +Mark-Up-2.50 per cent), S.P.0.25 per cent,” the bank’s website said.
Meanwhile Bank of India also upwardly revised its rates last week. According to its website, “The effective RBLR (repo based lending rate) w.e.f from June 8, 2022 is 7.75 per cent as per the revised repo rate (4.90 per cent).”
Punjab National Bank’s repo-linked lending rate (RLLR) has also been hiked and now stands at 7.40 per cent.