EMI Hike: Your EMI will increase from today, these four banks have increased the interest rates on all types of loans
[ad_1]
EMI Hike: Four major banks, Bank of Baroda (BoB), Canara Bank, Bank of Maharashtra and Karur Vysya Bank have increased the interest rates on home loans and other loans. The new rate will be applicable from 12th August i.e. from today itself.
The Reserve Bank of India (RBI) did not make any change in the policy interest rate (repo rate) in the monetary review meeting on Thursday and retained it at 6.5 percent. However, even after this, four major banks have increased the interest rates of other loans including home loans. These include Bank of Baroda (BoB), Canara Bank, Bank of Maharashtra and Karur Vysya Bank.
All the four banks have revised the Marginal Cost Based Lending Rate (MCLR) for all loans. MCLR is the base minimum rate based on which banks lend to customers. BoB has revised the one year MCLR to 8.70 per cent. It is now 8.65 per cent. The new rates will be effective from August 12. Canara Bank has also increased the MCLR by 0.05 per cent. It has now increased to 8.70 percent. The new rate will be effective from August 12.
Bank of Maharashtra (BoM) has increased MCLR by 0.10 percent. The one year MCLR has increased from 8.50 per cent to 8.60 per cent. The revised rates are effective from August 10. At the same time, private sector Karur Vysya Bank has increased the lending rate by 0.15 percent to 7.75 percent. The revised rates will be effective from August 14.
Monthly installment will increase: This step of banks will increase the burden on the customers. EMI of home loan, personal loan, car loan etc. will increase as all these have a direct impact on MCLR. If the bank gives a loan to a customer, then it charges an interest rate at the MCLR rate. If there is any change in it, then the cost of the loan i.e. the interest rate is also affected.
These banks have already increased the hike: Earlier, HDFC, ICICI, Punjab National Bank and Bank of India had also increased the MCLR. Their rates have become effective from 1 August.
[ad_2]
Source link
