Here is a look at four big banks that have hiked interest rates on external benchmarked home loan interest rates (EBLR).
ICICI Bank revised their External Benchmark Lending Rate (EBLR) with effective from June 8, 2022. As RBI Policy Repo Rate effective June 8, 2022 is 4.90%.
According to ICICI Bank website, “ICICI Bank External Benchmark Lending Rate” (I-EBLR) is referenced to RBI Policy Repo Rate with a mark-up over Repo Rate. I-EBLR is 8.60% p.a.p.m. effective June 8, 2022.
Bank of Baroda’s rate of interest on various loans linked with Baroda Repo Linked Lending rate(BRLLR) and these will be effective from 09.06.2022.
According to website, “For Retail Loans applicable BRLLR is 7.40% w.e.f. 09.06.2022 (Current RBI Repo Rate:4.90%+Mark-Up-2.50%), S.P.0.25%.”
As on date, Repo Linked Lending Rate (RLLR) of
will be 7.40% with effective from June 9, 2022
Bank of India
Bank of India also revised the rates. According to the website, “The effective RBLR w.e.f from 08/06/2022 is 7.75% as per the revised Repo rate (4.90%).”
How much your EMI will increase
After the current hike, the total increase in repo rate is 0.9%. Due to the rate hikes by the central bank, lenders like banks and housing finance companies, will increase their lending rates correspondingly, which in turn means that your EMIs will go up accordingly. If you have a home loan with Rs 30 lakh outstanding with a balance tenure of 20 years at 7% pa interest, your EMI will go up by Rs 1,648 from Rs 23,259 to Rs 24,907. For each lakh rupee of loan, you may have to dole out Rs 55 extra for EMI.
This may not be the last rate hike
These two hikes in quick succession do not look like the end of the rate hikes. Inflationary factors are yet to show any durable sign of subsiding.
“We may have seen the peak of inflation for now, but we may not have seen the end of it yet,” says Churchil Bhatt, Executive Vice President & Debt Investments,
Life Insurance. Till the time inflation comes down within the comfort zone of RBI, which 2-6%, it will be compelled to exercise the interest rate hike option among other inflation control options.