- News>
- Personal Finance
As repo rate increases, THESE banks hike interest rates, check which lender offers most affordable loans
RBI has increased the repo rates by 50 basis points, or 0.5 per cent, to 4.90 per cent from 4.40 per cent. Following RBI`s move, HDFC, ICICI, PNB, Bank of Baroda, and Central Bank of India, among others have increased lending or interest rates on home loans.
Highlights
- The Repo Linked Loan Rate (RLLR) of PNB has been raised from 6.90 per cent to 7.40 per cent.
- Baroda Repo Linked Lending Rate [BRLLR] has been hiked to 7.40 per cent.
- Central Bank of India raised its rate by 50 basis points.
New Delhi: After the Reserve Bank of India (RBI) increased the raise repo rates by 50 basis points, or 0.5 per cent, to 4.90 per cent from 4.40 per cent, a spate of public and private sector lenders, including ICICI Bank, PNB, Bank of Baroda, Bank of India, and the Central Bank of India, raised interest rates. As a result of the repo rate-linked lending rates, borrowers of home, vehicle, personal, and other forms of loans would now have to pay higher EMIs. Here’s the list of banks offering the most affordable home loans:
PNB Housing
The Repo Linked Loan Rate (RLLR) of Punjab National Bank (PNB) has been raised from 6.90 per cent to 7.40 per cent (Repo Rate (4.90 per cent) + Mark-up (2.50 per cent). For existing and new customers, the new rate is effective from June 9, 2022. According to the official PNB Housing website, the lender is offering home loans at an interest rate of 6.99%.
Bank of Baroda (BoB)
The Baroda Repo Linked Lending Rate [BRLLR] has been raised to 7.40 per cent by the Bank of Baroda, with the new rate taking effect on June 9, 2022. "The applicable BRLLR for Retail Loans is 7.40 per cent w.e.f. 09.06.2022 (current RBI Repo Rate:4.90 percent +Mark-Up-2.50 percent), S.P.0.25 percent," according to BoB. Bank of Baroda is currently offering home loans starting at 6.90%, according to the bank’s website. (ALSO READ: LIC Jeevan Umang Policy: Save Rs 45 daily to get Rs 36,000 pension! Check how)
Central Bank of India
The Central Bank of India raised its lending rate by 50 basis points. Borrowers who took out housing, vehicle, education, and other forms of loans from the public sector bank would be affected by the rate hike. The current lending rate on a home loan is RBLR (4.90%+2.85%) + CRP. (ALSO READ: Tesla Stock Split: Elon Musk’s EV firm plans to seek investor approval for 3-for-1 split)
HDFC
HDFC, one of the country's largest housing lenders, announced, on Thursday, that its lowest home loan rates will now start at 7.55 per cent, up from 6.7 per cent in March 2022.
ICICI Bank
The external benchmark lending rate (EBLR) of ICICI Bank has been raised by 50 basis points (0.50 per cent) to 8.60 per cent from 8.10 per cent previously. The new rate is effecting from June 8, 2022, according to the lender's official website. Currently, the bank is offering home loans starting at a 7.6 per cent lending rate.
LIC HFL
LIC HFL increased the lending rate on home loans last month. The lender is yet to announce a hike. At present, home loans start at a starting interest rate of 6.9 per cent.