The HDFC Bank on Saturday announced that they are increasing the home loan interest rate by 30 basis points that will come into effect from today i.e. May 9, according to an exchange filing on Saturday.
This decision will increase the EMIs paid by borrowers. HDFC’s decision to hike the rates has come after the RBI announced an increase in the repo rates.
The RBI has increased the repo rate by 40 basis points taking it to 4.40%. The percentage hike happened for the first time in nearly 4 hours.
Before HDFC Bank, several other public and private lenders increased their lending and deposit rates after RBI’s shocking move on Wednesday. Banks like ICICI, and BoB have increased their loan interest rates by 40 basis points.
“ICICI Bank External Benchmark Lending Rate” (I-EBLR) is referenced to RBI Policy Repo Rate with a mark-up over Repo Rate. I-EBLR is 8.10 per cent p.a.p.m. effective May 4, 2022,” ICICI Bank website read.
Now, EMIs on loans are only going to rise after RBI’s repo rate decision, hence it is important to plan your expenses. Know here how you can manage your expenses amidst the rising interest rates.