The Reserve Bank of India (RBI) increased the repo rate once more in an effort to combat inflation. In its latest monetary policy announcement on September 30, 2022, the central bank raised the repo rate by 50 basis points (bps; 100 basis points = 1%) to 5.90%.
Following the RBI hike, many banks including SBI, PNB, ICICI Bank, Bank of Baroda, Bank of India, and mortgage lender HDFC Ltd have hiked their loan interest rates. Yes Bank has hiked its MCLR. Here is a quick comparison of banks and NBFCs that have hiked lending rates post the RBI hike, and also some banks that have increased their MCLR.
HDFC loan rates
HDFC Ltd raised their loan interest rates on September 30, 2022.
As per the BSE notification by HDFC, “HDFC increases its Retail Prime Lending Rate (RPLR) on housing loans, on which its adjustable rate home loans (ARHL) are benchmarked, by 50 basis points, with effect from October 1, 2022.”
According to the HDFC website, Retail Prime Lending Rate is at 17.95%”
With a hike in home loan interest rate, the EMIs that will be deducted from your bank account every month also also increase.
ICICI Bank loan rates
ICICI Bank announced a 50 basis point (bps) increase in its external benchmark lending rate (100 bps = 1%). The bank has also raised the marginal cost of funds lending rate (MCLR). As per the bank’s website, “ICICI Bank External Benchmark Lending Rate” (I-EBLR) is referenced to RBI Policy Repo Rate with a mark-up over Repo Rate. I-EBLR is 9.25% p.a.p.m. effective September 30, 2022.”
In terms of MCLR, the bank increased the interest rate by 10 basis points.
SBI loan rates
SBI has increased its external benchmark lending rate (EBLR) and repo linked lending rate (RLLR) by 50 basis points (bps). From October 1, 2022, SBI’s EBLR is 8.55% and its RLLR is 8.15%.
PNB loan rates
The Punjab National Bank (PNB) has raised the interest rate on housing loans. The bank increased the repo-linked lending rate (RLLR) by 50 basis points (100 bps = 1%), raising it from 7.70% to 8.40%.
In addition, the bank has increased the marginal cost of funds lending rate (MCLR) by 0.05% across all tenures. The bank announced a 5 basis point increase in the base rate. “The base rate has been revised from 8.75% to 8.80% effective 01-10-2022,” according to the bank’s website.
Bank of Baroda loan rates
Bank of Baroda has revised the repo-linked lending rate with effect from October 1, 2022. As per the website, “In terms of guidelines issued by Reserve Bank of India regarding implementation of External Benchmark Based Lending rates. Bank has introduced Baroda Repo Linked Lending Rate (BRLLR) in respect of all Retail Lending products w.e.f 01.10.2019. RATE OF INTEREST ON VARIOUS LOANS LINKED WITH BARODA REPO LINKED LENDING RATE (BRLLR)- w.e.f. 01.10.2022.For Retail Loans applicable BRLLR is 8.45% w.e.f. 01.10.2022 (Current RBI Repo Rate: 5.90% + MarkUp/Base Spread 2.55%).”
Bank of India loan rates
According to Bank of India’s website, “The effective RBLR w.e.f from 30/09/2022 is 8.75% as per the revised Repo rate (5.90%).” The bank has also hiked the MCLR by 10-20 basis points on certain tenors. Given below are the latest MCLR rates effective from October 1, 2022: The bank has also hiked its base rate by 0.20%. “The Bank’s Base Rate has been revised from 9.00% pa. to 8.80% pa. effective from 01.10.2020,” said the bank’s website.
Yes Bank lending rates
Yes Bank has announced that it has revised the marginal cost of funds-based lending interest rates (MCLR) on loans, effective October 1, 2022. Yes Bank’s base rate effective 1st October 2022 is 9.25%
