Apart from this, two public sector banks …. Bank of India and Central Bank of India have also announced an increase in their interest rates after the hike in the repo rate.
RBI on Wednesday announced to increase the policy rate (repo) by 0.40 percent to 4.40 percent to control inflation. After this the banks have taken this decision.
The increase in EBLR rate will make personal loans, vehicle and home loans costlier for customers.
Private sector ICICI Bank said, “ICICI-EBLR is being revised along with the repo rate. It will now be 8.10 percent. It is effective from May 4.
Apart from this, the public sector Bank of Baroda has also revised the interest rate based on the external standard rate.
“The BRLLR (Baroda Repo Linked Rate) applicable for retail loans has been reduced to 6.90 per cent with effect from May 5, 2022. This includes RBI’s 4.40 per cent repo rate and 2.50 per cent ‘markup’,” it said.
At the same time, Bank of India has also increased its RBLR to 7.25 percent with effect from May 5, 2022, with an increase in the repo rate.
The Central Bank has also increased its RBLR by 0.40 per cent to 7.25 per cent. It will come into effect from May 6, 2022.
EBLR is the sum of the external benchmark rate and the credit risk premium.