Here’s a look at four major banks that have raised interest rates on the External Interest Reference Rate for Home Loans (EBLR).
Also Read: How Much Worse Will Rates Get For Borrowers? Experts speak
Also Read: RBI Raises Repo Rate: By How Much Will Your EMI Increase Per Lakh Loan?
ICICI Bank has revised its External Benchmark Lending Rate (EBLR) with effect from June 8, 2022. As the RBI policy repo rate effective June 8, 2022 is 4.90%.
According to the ICICI Bank website, the “ICICI Bank External Reference Rate” (I-EBLR) is referenced to the RBI policy repo rate with a markup over the repo rate. I-EBLR is 8.60% papm as of June 8, 2022.
Bank of Baroda interest rates on various loans linked to the Baroda Reverse Repo Lending Rate (BRLLR) and these will be effective from 09.06.2022.
According to the website, “For retail loans, the applicable BRLLR is 7.40% since 09.06.2022 (current RBI repo rate: 4.90% + 2.50% mark-up), SP0, 25%.”
On the date, the Repo Linked Lending Rate (RLLR) of
will be 7.40% from June 9, 2022
Bank of India
Bank of India also revised rates. According to the website, “effective RBLR wef from 08/06/2022 is 7.75% according to the revised Repo rate (4.90%).”
How much your EMI will increase
After the current hike, the total increase in the repo rate is 0.9%. Due to rate hikes by the central bank, lenders like banks and housing finance companies will increase their lending rates accordingly, which in turn means your EMIs will increase accordingly. If you have a home loan with Rs 30 lakh outstanding with a balance of 20 years at 7% interest per annum, your EMI will increase by Rs 1,648 from Rs 23,259 to Rs 24,907. For each rupee lakh of loan, you may need to pay extra 55 rupees for EMI.
This may not be the last rate hike
These two back-to-back increases do not sound like the end of rate hikes. Inflationary factors have not yet shown lasting signs of easing.
“We may have seen the peak of inflation for now, but we may not have seen the end of it yet,” says Churchill Bhatt, executive vice president and debt investments,
Life insurance. Until inflation drops to the RBI comfort zone of 2-6%, he will be forced to exercise the interest rate hike option among other inflation control options. .