New Delhi. A day after the Reserve Bank of India (RBI) raised the repo rate, customers suffered a major setback. Now loans from banks have become expensive for you. Bank of Baroda and ICICI Bank have given a big blow to the customers. That is, now it has become expensive to take a home loan, car loan, or personal loan from these two banks.
ICICI Bank increased the rate so much
A day after the Reserve Bank of India hiked the repo rate by 40 basis points, ICICI Bank on Thursday announced a hike in the external benchmark lending rate (EBLR). The new rates have come into effect from May 4. ICICI Bank said that after this increase, now the I-EBLR has become 8.10 percent per annum.
RBI hikes repo rate, how will it affect you? learn here
Bank of Baroda's rate soared
On the other hand, the government sector Bank of Baroda has increased its Repo Rate Lending Rate (RRLR) with effect from 5 May 2022. After this, now the 'Baroda Repo Rate Lending Rate' for retail loans has become 6.90 percent.
Banks add credit premium risk (CPR) to EBLR and RRLR while calculating the lending rate for an auto or home loan.
RBI made a big announcement
Reserve Bank of India Governor Shaktikanta Das had increased the repo rate by 0.40 percent or 40 basis points. This is the first hike in the repo rate since August 1, 2018, which was implemented immediately. The Repo rate has been increased to 4.40 percent.
After this move of the Reserve Bank, there is pressure on all the banks to increase their interest rates. Soon other banks can also announce to make loans expensive.
