PNB and BOB Bank gave a big blow to the customers, know

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Giving a major blow to the customers of Punjab National Bank and Bank of Baroda, their lending rates have been increased. This decision will directly affect those customers who have taken loans from here. While PNB has implemented the new rate, Bank of Baroda’s new rate will be applicable from February 12.

PNB recently said in a regulatory filing that repo-linked lending rates have been increased by 25 basis points. Lending rates have now been increased from 8.75 percent to 9 percent.

Bank of Baroda has increased MCLR by 5 basis points. The bank’s MCLR has increased from 7.85 per cent to 7.90 per cent overnight. MCLR has increased from 8.15 per cent to 8.20 per cent for at least one month.

These decisions have been taken as the Reserve Bank of India hiked the policy rates for the sixth time in a row. Amid rising inflation, the RBI has increased the repo rate by 25 basis points to 6.5 per cent. They have been increasing the repo rate since May this year. The repo rate was increased for the first time in May last year.

This hike is likely to make home loans, car loans and personal loans more expensive. This is because due to increase in repo rate, banks will take money from RBI at a higher rate.

Both PNB and BOB will lend at higher rates from now on.

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