To combat inflation, the Reserve Bank of India increased the repo rate five times in FY23. The central bank's most recent change in monetary policy was announced on December 7, 2022, when 35 basis points raised the repo rate to 6.25%. The strong credit growth is pressuring financial institutions to raise deposits. Just a day after the RBI announced its repo rate, some banks have announced interest rate increases on home loans because these changes often have a more immediate impact on lending rates than deposit rates.
Bank of Baroda
According to the Bank of Baroda's website, "Interest Rate on Various Retail Loans Linked with Baroda Repo Linked Lending Rate [BRLLR] w.e.f. 08.12.2022." Regarding the implementation of the Reserve Bank of India issued for the application of rates for external benchmark-based lending. Beginning on October 1, 2019, the Bank will apply the Baroda Repo Linked Lending Rate (BRLLR) to all retail lending products."
Additionally, according to the information posted on the Bank of Baroda website, "Our BPLR on all the current accounts is 12.90% per annum w.e.f. 12.10.2022."
The applicable BRLLR for retail loans is 8.85% as of 08.12.2022 (the current RBI repo rate is 6.25% plus a markup/base spread of 2.60%).
HDFC Bank
On September 30, 2022, HDFC Ltd. increased its loan interest rates.
According to HDFC's BSE statement, "with effect from October 1, 2022, HDFC raised its Retail Prime Lending Rate (RPLR) on home loans, on which its flexible rate home loans (ARHL) are benchmarked, by 50 basis points."
The HDFC website states that the retail prime lending rate is 17.95%.
The monthly EMIs that will be taken from your bank account likewise rise with an increase in the interest rate on your house loan.
Indian Overseas Bank
Revisions to the Repo Linked Lending Rote (RLLR) and Marginal Cost of Funds (MCLR) will take effect on October 12, 2022, according to IOB's BSE filing. Accordingly, with effect from December 10, 2022, Bonk has changed the RLI-R to 9.10%.
The Indian Overseas Bank has also raised the (MCLR) marginal cost of funds across tenures by 15 to 35 basis points (IOB).
IOB website states that " with CIC Score of 800 and above, 0.50% Special Interest Concession to Borrowers. 0.20% to borrowers for investing in Electric 4 Wheelers and 0.20% to existing Home Loan Borrowers of IOB. (T&Cs Apply). 1.00% Special Interest Concession to Borrowers with a CIC Score of 800 and above. (T&Cs Apply). 1.00% Special Interest Concession to Borrowers with a CIC Score of 800 and above. (T&Cs Apply)."
Bank of India
According to BOI's website, the effective RBLR as of December 7, 2022, is 9.10%, according to the revised repo rate (6.25%). In addition, the Bank of India raised its MCLR for all tenures by 25 basis points, effective from December 1, 2022. As a result, the one-year MCLR is now 8.15%, while the six-month MCLR is 7.90%.
ICICI Bank
The external benchmark lending rate of ICICI Bank has increased by 50 basis points (bps; 100 bps = 1%). Additionally, the bank increased the loan rate for the marginal cost of funds (MCLR). As a result, the (I-EBLR) "ICICI Bank External Benchmark Lending Rate" is referenced to the RBI Policy Repo Rate with a markup above Repo Rate. According to the bank's website, it is 9.25% p.a.p.m. as of September 30, 2022. In addition, the bank raised the interest rate by 10 basis points to MCLR.
SBI Bank
SBI has raised its repo-linked lending rate (RLLR) and external benchmark lending rate (EBLR) by 50 basis points, respectively (bps). SBI'sAs a result, EBLR, and RLLR, as of October 1, 2022, are 8.55% and 8.15%, respectively.
PNB Bank
The Punjab National Bank (PNB) has increased the interest rate on home loans. The bank raised the repo-linked lending rate (RLLR) from 7.70% to 8.40% by adding 50 basis points (100 bps = 1%).
Additionally, the bank raised the MCLR (marginal cost of funds lending rate) across all tenures by 0.05%. According to the bank, the base rate was increased by 5 basis points. According to the bank's website, "the base rate has been revised from 8.75% to 8.80% effective 01-10-2022."