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Banks and HFCs that have revised home loan interest rates after repo hike

Some banks and housing finance companies announced an increase in their home loan rates immediately after RBI's announcement on repo rate hike

May 10, 2022 / 09:38 AM IST
The Reserve Bank of India Governor Shaktikanta Das on Wednesday announced a 40 basis-point hike in repo rate, besides raising the cash reserve ratio by 50 bps. This will affect all floating-rate home loans. However, in case of borrowers whose loans were sanctioned after October 1, 2019, banks will pass on the entire rate hike.
The Reserve Bank of India Governor Shaktikanta Das on Wednesday announced a 40 basis-point hike in repo rate, besides raising the cash reserve ratio by 50 bps. This will affect all floating-rate home loans. And, in case of borrowers whose home loans were sanctioned after October 1, 2019, banks will pass on the entire repo rate hike.
Floating-rate home loans sanctioned after October 1, 2019 are linked to an external benchmark, which in case of most banks is the repo rate. Since it now stands revised to 4.4 percent, all new retail loans linked to it will see an equivalent rise in their interest rates.
Floating-rate home loans sanctioned after October 1, 2019 are linked to an external benchmark, which in case of most banks is the repo rate. Since it now stands revised to 4.4 percent, all new retail loans linked to it will see an equivalent rise in their interest rates. Several banks had already started raising their marginal cost of funds-based lending rate (MCLR), in view of the hardening interest rates in the system.
Public sector major Bank of Baroda (BoB) has announced an increase of 40 bps in its repo-linked lending rate. The lowest home loan interest rate offered by the bank has gone up from 6.5 percent to 6.9 percent.
Public sector major Bank of Baroda (BoB) has announced an increase of 40 bps in its repo-linked lending rate. The lowest home loan interest rate offered by the bank has gone up from 6.5 percent to 6.9 percent. Similarly, Bank of India (BOI), too, has raised its interest rates from 6.5 percent to 6.9 percent. As a result, equated monthly installments (EMI) for a Rs 75-lakh home loan with a 20-year tenure will go up from Rs 55,918 to Rs 57,698.
Private sector lender Federal Bank's lowest home loan interest rate on offer has gone up from 7.65 percent to 8.05 percent

Private sector lender Federal Bank's lowest home loan interest rate on offer has gone up from 7.65 percent to 8.05 percent. On a Rs 75-lakh loan with a repayment tenure of 20 years, EMI will increase by Rs 1857, from Rs 61,109 to Rs 62,967.
India's largest mortgage lender HDFC, too, have hiked its retail prime lending rate by 30 bps, with effect from May 9. Those with credit score of over 750 will now be charged an interest rate of 7 percent, up from 6.7 percent earlier.
India's largest mortgage lender HDFC, too, has hiked its retail prime lending rate by 30 bps, with effect from May 9. Those with credit scores of over 750 will now be charged an interest rate of 7 percent, up from 6.7 percent earlier.
Private sector major ICICI Bank has hiked its repo-linked lending rate, and its lowest home loan rate now stands at 7.1 percent, up from 6.7 percent earlier.
Private sector major ICICI Bank has hiked its repo-linked lending rate, and its lowest home loan rate now stands at 7.1 percent, up from 6.7 percent earlier.
Note from Bankbazaar.com: Data taken from respective banks; website as on May 06, 2022. Table displays lowest interest rate (floating) on home loans offered by banks that have hiked their EBLR after the RBI's repo rate hike announcement of on May 4, 2022. ICICI Bank has increased the EBLR but the website shows home loan interest rate linked to old repo rate. Data is not exhaustive.
Data has been collected by Bankbazaar.com from respective banks' website as on May 06, 2022. The table displays the lowest interest rate (floating) on home loans offered by banks that have hiked their EBLR after the RBI's repo rate hike announcement of on May 4, 2022. ICICI Bank has increased the EBLR but the website shows home loan interest rate linked to old repo rate. The list of banks that have raised their rates is not exhaustive.
Moneycontrol PF Team
first published: May 9, 2022 04:51 pm
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