Four major banks hike home loan interest rate post RBI's 50-bps Repo Rate hike

9 Jun 2022 , 03:04 PM

On June 8, 2022, the Reserve Bank of India announced a hike in Repo Rate by 50 basis points. Following this announcement, many banks announced a hike in their external benchmark linked home loan interest rates.

In order to tackle inflation, RBI has hiked rates twice in a row within a period of 36 days.

Accordingly, four banks have hiked interest rates on their external benchmarked home loan interest rates (EBLR).

Bank of Baroda has increased the rate of interest applicable on various loans linked with the Baroda Repo Linked Lending Rate (BRLLR). The new rate shall be effective from June 9, 2022.

Bank of Baroda stated that for Retail Loans, applicable BRLLR is 7.40%, to be effective from June 9, 2022.

Bank of India has revised its RBLR by 50 basis points to 7.75%, effective from June 8, 2022.

ICICI Bank has also revised its External Benchmark Lending Rate (EBLR) in line with a 50 bps increase in Repo Rate. The new rate was effective from June 8, 2022.

ICICI Bank’s External Benchmark Lending Rate (I-EBLR) has been increased in reference to RBI Policy Repo Rate. It stated that I-EBLR is 8.60% p.a.p.m., to be effective June 8, 2022.

Punjab National Bank has revised its Repo Linked Lending Rate (RLLR) to 7.40%, which shall be effective from June 9, 2022.

After the current hike, the repo rate has increased by 0.9% so far. Due to this revision, banks and financial institutions will increase their corresponding lending rates.