Expensive loan: After the increase in the repo rate of RBI, these two banks made the loan expensive, the EMI burden will increase on the customers

ICICI Bank PNB Loan Costly: The Reserve Bank of India has increased the repo rate for the third time in the review meeting on August 5. The central bank hiked 0.50 basis points. After this it was believed that now the loans of all banks will be more expensive. At present the repo rate is […]
 


Expensive loan: After the increase in the repo rate of RBI, these two banks made the loan expensive, the EMI burden will increase on the customers

ICICI Bank PNB Loan Costly: The Reserve Bank of India has increased the repo rate for the third time in the review meeting on August 5. The central bank hiked 0.50 basis points. After this it was believed that now the loans of all banks will be more expensive. At present the repo rate is 5.40%. After the announcement of RBI, two big banks have decided to make their loans more expensive.

The country’s largest private sector banks ICICI Bank and Punjab National Bank have decided to increase their loan rates. ICICI Bank has decided to increase its external benchmark lending rate. These rates are effective from 5 August 2022. It has gone up to 9.10% after the country’s second largest public sector bank Punjab National Bank decided to increase the I-EBLR. PNB has decided to increase its RBI linked loan RLLR (Repo Linked Lending Rate). It has increased from 7.40% to 7.90%. These new rates will be applicable from 8 August 2022.

What is an external benchmark?

In the year 2019, the central bank i.e. Reserve Bank of India decided that any kind of personal loan and retail loan will be linked to the repo rate. The External Benchmark Lending Rate is the lowest interest rate charged on any loan. At present there are three types of external benchmark lending rates operating in banks. These include MCLR, RLLR and EBLR rates.

 

Repo rate hiked 3 times in 94 days

In order to control the rising inflation, the RBI has decided to increase the total repo rate by 3 times in 94 days. There has been an increase of 0.90 basis points in the first two installments. At present, the RBI is giving a total repo rate of 5.40 percent. RBI is continuously increasing the repo rate to control the rising inflation in the country.