BackLoans to become dearer as these banks hike lending rates. Details here
Several state-owned, as well as private banks, have begun raising lending rates following the Reserve Bank of India's surprise repo rate hike
PremiumSeveral state-owned, as well as private banks, have begun raising lending rates following the Reserve Bank of India's surprise repo rate hike on Wednesday.
From HDFC Ltd to state-owned Punjab National Bank (PNB), a total of five banks have hiked lending rates in the past four days.
In a surprise move on May 4, the Reserve Bank of India (RBI) hiked the repo rate by 40 basis points to 4.4% after nearly two years of keeping the rate at which it lends to commercial banks steady. In addition, the central bank also raised the cash reserve ratio (CRR) by 50 basis points to 4.5% to suck out ₹85,000 crore of excess liquidity from the banking system.
List of banks that have hiked lending rates post-RBI repo rate announcement:
HDFC Ltd: The mortgage lender on Saturday announced an increase in its benchmark lending rate by 30 basis points (bps).
"HDFC increases its Retail Prime Lending Rate (RPLR) on housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 30 basis points, with effect from May 9, 2022," the housing finance company said in a statement.
The revised rates for new borrowers range between 7% and 7.45%, depending on credit and loan amount. The existing range is 6.70% to 7.15%.
For existing customers, the rates would rise by 30 basis points or (0.3%).
Punjab National Bank (PNB): PNB hiked its external benchmark linked lending rate by 0.40% to 6.90% with effect from June 1.
For new customers, the revised RLLR will be effective from May 7, 2022.
ICICI Bank: Private sector lender ICICI Bank has revised its external benchmark lending rate (EBLR) to 8.10%. The EBLR moves up or down in accordance with the movement in the repo rate.
Bank of Baroda: The state-owned bank has increased the lending rate to 6.90%. BoB had introduced Baroda Repo Linked Lending Rate (BRLLR) in respect of all retail lending products from October 2019.
The bank revised the external benchmark linked lending rate, with effect from May 5, 2022.
Bank of India: It said that its RBLR (Repo Based Lending Rate) has been increased to 7.25% as per the revised repo rate with effect from May 5.
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