State Bank of India has increased the External Benchmark Based Lending Rate (EBLR) whose new rates are applicable from 15 August 2022. SBI’s new lending rate has become 8.05 percent. Earlier this rate used to be 7.55 percent.
These banks increased home loan rates after repo rate hike
As soon as the Reserve Bank increased its repo rate, all the banks increased the rates of home loans. To control inflation, the Reserve Bank had recently increased the repo rate by 50 basis points. This recent hike was done in the month of August. Prior to that, the Reserve Bank had increased the repo rate by 90 basis points. In this way, the repo rate has increased by a total of 140 basis points. With this, government and private banks have increased their home loan rates. In the last one month, 5 big banks of the country have increased the interest rate. These banks include SBI, ICICI Bank, Bank of Baroda, Canara Bank and PNB.
1-State Bank of India
State Bank of India has increased the External Benchmark Based Lending Rate (EBLR) whose new rates are applicable from 15 August 2022. SBI’s new lending rate has become 8.05 percent. Earlier this rate used to be 7.55 percent. Repo rate and credit risk premium are linked in EBLR. This premium depends on your credit score. SBI has increased the repo rate linked lending rate from 7.15 percent to 7.65 percent.
According to ICICI Bank, the new repo rate of the Reserve Bank has reached 5.40 percent from August 5, 2022. The external benchmark lending rate of ICICI Bank depends on the repo rate of RBI. On this basis, this bank has reduced its EBLR to 9.10 percent from August 5.
3-Bank of Baroda
Baroda Repo Linked Lending Rate has increased. The Repo Linked Lending Rate of Bank of Baroda is effective from August 6, 2022. Interest is being charged on retail loans at the rate of 7.95 percent. In the Baroda Repo Linked Lending Rate, the repo rate which is 5.40 percent and the mark up rate is 2.55 percent linked.
Canara Bank has increased the repo rate linked lending rate by 50 basis points. Earlier this rate was 7.80 percent, which has been increased to 8.30 percent. The new rate is applicable from August 7, 2022.
5-Punjab National Bank
Punjab National Bank ie PNB has increased the repo, external benchmark linked lending rate to 7.90 percent. PNB has said that after the increase in the repo rate, Punjab National Bank revised the lending rate and increased it from 7.40 percent to 7.90 percent.