Newspro24x7
BUSINESS NEWS ALERT

EMI increased : Three government and one private banks increased the interest rates of home and other loans, EMI burden increased

New Delhi : India’s apex bank RBI on Wednesday announced to increase the policy rate from 0.40 percent to 4.40% to control inflation. After this many banks have increased the interest rates on loans. Many banks have increased the applicable RLLR/BLLR (Repo or Benchmark Linked Rate) for retail loans by 0.40 percent with effect from May 5, 2022. Two government and two private banks have taken this initiative first.

Within 24 hours of RBI’s announcement, banks have started increasing their home loan and other rates.

Banks hike interest rates within 24 hours

As soon as the Reserve Bank of India (RBI) loosened the reins of loans, banks have started increasing the interest rates within 24 hours without any more waiting. The very next day after the announcement of increasing the repo rate and cash reserve ratio (CRR) of RBI, many big banks of the country have announced to increase the interest rates.

Bank of Baroda and ICICI Bank hike interest rates

Bank of Baroda and ICICI Bank have increased the interest rates on all their loans. Thus, loans from both the banks have become costlier for all old and new customers including home, auto and personal loans. Both these banks have increased the interest rates (external benchmark linked loan interest rates) linked to the repo rate.

ICICI Bank has announced to increase the interest rates on its website. The bank has informed its customers that the bank has increased the Actual Benchmark Lending Rate (I-EBLR) in accordance with the increase in the repo rate by the RBI. The bank has increased the I-EBLR by 40 basis points to 8.10%. This increase has also come into effect from 4 May.

Bank of Baroda has also increased the Repo Linked Lending Rate (BRLLR) for retail loans by 40 bps to 6.90%. The increased rates of ICICI Bank have come into effect from May 4 and that of Bank of Baroda from May 5.

Central Bank and Bank of India increased by 0.40 percent

Apart from this, two public sector banks Bank of India and Central Bank of India have also announced an increase in their interest rates after the hike in the repo rate. Bank of India has also increased its RBLR to 7.25 percent with effect from May 5, 2022, with the increase in the repo rate.

Whereas the Central Bank has also increased its RBLR by 0.40 percent and has reduced it to 7.25 percent. It will come into effect from May 6, 2022. EBLR is the sum of the external benchmark rate and the credit risk premium.

This is how to understand what is external benchmark loan rate

The system of external benchmarks has started from 2019. With effect from October 1, 2019, RBI had made it mandatory to link all new personal or retail loans with floating rate to an external benchmark. Here private banks have the freedom to set any external benchmark in particular. External Benchmark Lending Rate is the lowest interest rate offered by the bank for lending. Bank cannot give loan below this. Banks fix the total interest rate by adding the credit risk premium over this external benchmark lending rate and the repo rate.

Related posts

Three Pakistani terrorists of Jaish-e-Mohammed killed in Baramulla, one policeman martyred

Team Newspro24x7

India closed today on many issues including caste census, know where it will have more impact

Team Newspro24x7

Home Minister Amit Shah will see Akshay Kumar’s ‘Prithviraj’ on June 1, before the release, know why special screenings are being held

Team Newspro24x7

Government panicked by record exports, after wheat, now sugar exports are also banned from June 1

Team Newspro24x7

Violence over renaming of district in Andhra Pradesh, minister’s house burnt, many injured

Team Newspro24x7

Weather updates : There is a possibility of rain in Delhi even today, there is a possibility of thunderstorms in these states

Team Newspro24x7

Major accident in Karnataka, 7 killed, 26 badly injured in passenger bus and lorry collision

Team Newspro24x7

US President raised the issue of Russia-Ukraine war, Modi said – Quad became effective in a short time, democratic powers are getting energy

Team Newspro24x7

Qutub Minar is a monument, no religion is allowed to worship, ASI’s affidavit in Saket court

Team Newspro24x7

13 countries including India, America will become an alternative to China-centric supply chain

Team Newspro24x7

Good News on Inflation: Modi government alerted on inflation, first increased inflation, now it will fight inflation

Team Newspro24x7

Gyanvapi Masjid case : Another petition filed in Supreme Court, know what was demanded

Team Newspro24x7

Security forces on target of terrorists, red alert issued in Srinagar

Team Newspro24x7

Strong welcome to PM Modi in Japan, meeting with Japanese industrialists in Tokyo

Team Newspro24x7

Trees uprooted at many places in Delhi-NCR due to storm and rain, airlines affected

Team Newspro24x7

Big accident at Patna airport, iron structure collapsed during construction work, two laborers died, one broken spine

Team Newspro24x7

Important disclosure in WHO emergency meeting on monkeypox ; More than 100 cases confirmed in Europe so far, know 10 updates

Team Newspro24x7

The water of 60 big dams out of 140 in the country decreased, three dams in Rajasthan too

Team Newspro24x7

Corona’s fourth wave will come at the end of June? Know what the former director of AIIMS gave the answer

Team Newspro24x7

‘I will quit playing cricket’ – Virat Kohli surprised by hinting at retirement

Team Newspro24x7

The price is highest in Rajasthan, now the difference in the price of Diesel-CNG is only Rs.12

Team Newspro24x7

Car full of processions collides with tree, 7 killed, 10 injured in Karnataka

Team Newspro24x7

Weather Update: Change in weather patterns in these states including Delhi, possibility of thunderstorm and rain

Team Newspro24x7

Know how many new cases of corona came in Uttarakhand?

Team Newspro24x7

International Yoga Day camp will be organized on June 21 in Kedarnath

Team Newspro24x7

Education Minister’s daughter was given instructions to sack the Calcutta High Court, 41 months salary will have to be returned

Team Newspro24x7

Supreme Court extended the tenure of the inquiry committee by 4 weeks, now hearing will be held in July

Team Newspro24x7

Navjot Singh Sidhu sought time from the court for surrender, told the reason for ill health

Team Newspro24x7

Prashant Kishor told Congress’s Chintan Shivir failed, said – ‘nothing will be achieved’

Team Newspro24x7

Air India plane’s engine stopped in mid-air as soon as it took off, pilot had to make emergency landing

Team Newspro24x7