BOI & HDFC Bank raise lending rates

Last week, several lenders including Bank of India and HDFC Bank raised their benchmark lending rates, hours after the RBI decided to boost the repo rate by 35 basis points. This action will cause an increase in EMI. The state-owned Bank of India announced on its website that the effective Repo Based Lending Rate (RBLR) as of December 7 is 9.10% based on the revised repo rate (6.25%). According to the HDFC Bank website, the one-year MCLR which serves as the benchmark for many consumer loans has risen by 50 basis points to 8.60%.

The Reserve Bank of India (RBI) increased the benchmark repo rate by 35 basis points earlier in the day, bringing it to 6.25 percent for the fifth straight month since May. The RBI has increased the benchmark rate by a total of 2.25 percent since May of this year. As a result, the bank rate and marginal standing facility (MSF) rate both increased to 6.50 percent. The standing deposit facility (SDF) rate is decreased to 6 percent. After the RBI increased the benchmark interest rate by 35 basis points, other banks are also anticipated to take a similar action. The banks will eventually raise their Repo-Linked Lending Rate (RLLR) and External Benchmark Based Lending Rate (EBLR) in line with the repo rate.

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BOI & HDFC Bank raise lending rates

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