Three Banks Including SBI Made Loans Expensive

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Three Banks Including SBI Made Loans Expensive
01 Oct 2022
6 min read

News Synopsis

Three banks, including SBI, made their loans costlier by 0.50% on Friday, hours after the RBI hiked the repo rate by 0.50 percent. Apart from these banks, HDFC Ltd has increased the interest rates on loans.

According to the information given on the SBI website, the bank has increased the external benchmark-based lending rate (EBLR) and the repo rate linked lending rate (RLLR) by 0.50-0.50 percent. With this amendment, these loan rates have increased to 8.55 percent and 8.15 percent respectively. This increase is effective from Saturday.

Similarly, the Bank of India has also increased the RBLR to 8.75 percent. Its rates have come into effect from Friday. Apart from these two banks, private sector ICICI Bank has also increased the EBLR to 9.60 percent. The new rates have come into effect from Friday.

In fact, the RBI has increased the repo rate by 0.50 percent in the bi-monthly monetary policy review meeting to control the rising inflation. With this, the repo rate has now increased to 5.90 percent. After this decision of the central bank, many other banks will also make their loans expensive.

Housing loan company HDFC Ltd. raised the interest rate by 0.50 percent on Friday. The increase in interest rates will increase the monthly installment for home loan borrowers from HDFC. The company said that after this hike, the new rates will be applicable from October 1 i.e. Saturday. This financial institution has increased interest rates for the seventh time in the last five months.

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