Home and auto loan EMIs set to rise! 5 banks raise lending rates after repo rate hike | New

ICICI Bank, PNB, Bank of Baroda, Bank of India and Central Bank of India among others have increased repo related lending rates which will lead to increased EMIs for home, car, educational and other loans for new and old customers.

New Delhi: Following the Reserve Bank of India’s decision to raise repo rates by 50 basis points or 0.5% to 4.90% from 4.40%, a large number of public sector lenders and private, including ICICI Bank, PNB, Bank of Baroda, Bank of India, Central Bank of India, have raised lending rates. Borrowers of home, auto, personal and other loans will now have to pay higher EMIs, due to recent rate hikes on repo-linked loans.

ICICI Bank Raises External Benchmark Lending Rate (EBLR)

ICICI Bank raised the external benchmark lending rate (EBLR) by 50 basis points or 0.50% to 8.60% from 8.10% previously. The lender’s official website noted that the new rate is effective from June 8, 2022.

PNB raises repo-linked lending rate (RLLR)

PNB raises repo-linked lending rate (RLLR)

Punjab National Bank has increased the Repo Linked Lending Rate (RLLR) from 6.90% to 7.40% {Repo Rate (4.90%) + Markup (2.50%)}. The new rate is effective from June 9, 2022, for existing and new customers.

Bank of Baroda (BoB)

Another public lender, Bank of Baroda, has announced an increase in the lending rate linked to Baroda Repo [BRLLR] at 7.40%, with the new rate in effect from 9 June 2022. “For retail loans, the applicable BRLLR is 7.40% from 09.06.2022 (current RBI repo rate: 4.90% + surcharge-2.50%), SP0.25%,” said Bob.

Bank of India (BOI)

Bank of India has raised the Revised Repo Based Lending Rate (RBLR) to 7.75%. The bank stated on its official website: “The effective RBLR wef of 08/06/2022 is 7.75% according to the revised Repo rate (4.90%)”.

Central Bank of India

The Central Bank of India also increased its RBLR by 50 basis points. The rate hike will impact borrowers who have taken out home, car, education and other types of loans from the public sector bank.

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