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Expansion
Even before the decision of the RBI’s Monetary Policy Committee (MPC) meeting to increase the repo rate, three banks HDFC Bank, Canara Bank and Karur Vysya Bank have made loans expensive.
HDFC Bank on Tuesday increased the interest rate by 0.35 percent. Earlier on Monday, Canara Bank has increased the one-year MCLR rate by 0.05 per cent to 7.40 per cent. Karur Vysya Bank has increased the interest rate by 0.40 percent to 13.75 percent. The outcome of the RBI meeting which started on Monday will come on Wednesday. In this, the repo rate is expected to increase by 0.35-0.40 percent. In May, the repo rate was increased by 0.40 per cent without a fixed schedule.
HDFC Bank increased the rate twice a month
HDFC Bank, the largest private sector bank, has hiked lending rates for the second time in a month. Earlier, the loan was made dearer by 0.25 per cent. After the new hike, HDFC Bank’s one-year MCLR will now be 7.85 per cent, from 7.50 per cent earlier. The two-year rate will be 7.95 per cent, while the three-year MCLR will be 8.05 per cent.
installment will increase like this
Loan amount 30 lakhs
Old rate at 6.75%
EMI 22,811
Repo rate hiked by 0.35%
EMI 23,649
at an increase of 0.40%
EMI 23,769
(figures in rupees)
Appeal not to increase CRR
Banks have appealed to RBI not to increase the cash reserve ratio (CRR). This will remove Rs 87 thousand crore from the banking system. In May also, 87 thousand crores have gone out due to increase in CRR.