The central bank, while making a big announcement on Wednesday, shocked the people by increasing the repo rate by 50 basis points. After this, today i.e. on Thursday, ICICI Bank has also increased its rate by 50 EBLR points. With this, customers will now have to pay 0.50 percent more interest for home loans, car loans and other bank loans.
ICICI Bank revised its external benchmark lending rate (EBLR) with effect from 8 June 2022. The RBI policy repo rate with effect from June 8, 2022 is 4.90%. RBI hikes rates for the second time in 36 days. According to the ICICI Bank website, the hike in the ICICI Bank External Benchmark Lending Rate (I-EBLR) rates is due to the RBI’s hike in the repo rate.
It is worth noting that even before the second hike in the repo rate of RPI, many banks had increased the interest rate. Although the interest rates of all these bank loans are linked to the RBI repo rate, so their new interest will be as follows.
Bank Of Baroda
Bank of Baroda’s interest rate on all types of loans linked to Baroda Repo Linked Lending Rate (BRLLR) is effective from June 9. According to the information given on the website, with effect from June 9, the interest is 7.40%.
PNB: Repo Linked Lending Rate (RLLR) of Punjab National Bank will be 7.40% with effect from June 9, 2022.
Bank of India: This bank has also revised the interest rates, according to the bank’s website, RBLR will be 7.75% with effect from June 8, 2022. This interest rate is as per the revised interest rate.
How much will your EMI increase
There has been a total increase of 0.9% in the RBI repo rate in a span of one month. Due to the rate hike by the central bank, lenders like banks and housing finance companies will increase their lending rates, which means your loan EMIs will increase.
How much EMI will have to be paid
If you have an outstanding balance of Rs 30 lakh with a balance tenor of 20 years at 7% p.a. interest, your EMI will go up to Rs 1,648 from Rs 23,259 to Rs 24,907. You may have to pay an additional Rs 55 for EMI for every Rs lakh loan.