RBL Bank hikes home loan, other loan interest rates: Check new rates

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RBL Bank has raised its (marginal cost of funds-based lending rates) MCLRs across tenures by 10 basis points (bps). The new MCLRs will come into effect on December 22, 2022, according to the bank’s official website.With the hike in MCLR, any loan linked to it will see an increase in interest rates which means EMIs for a range of loan products such as personal loans, home loans, and others, could also go up for both current and new customers.

The MCLR for overnight stands at 8.70% after the hike. The MCLR for one month is 8.80percent. The three-month and six-month MCLRs will be 9.10percent and 9.50 percent, respectively. The one-year MCLR, which is connected to many consumer loans, will now be 9.90 percent.

Latest RBL Bank MCLR (effective from December 22, 2022)

Benchmark TenorBenchmarkBenchmark Rate p.a. Interest Rate
1OvernightMCLR O/N8.70%
2One MonthMCLR 1M8.80%
3Three MonthMCLR 3M9.10%
4Six MonthMCLR 6M9.50%
5One YearMCLR 1 Y9.90%

Source: Bank website

RBI repo rate hikes
The repo rate was once again increased by 0.35% by the Reserve Bank of India (RBI) during its monetary policy meeting on December 7, 2022. Since May of this year, there have been five consecutive increases in the repo rate. The RBI has increased the repo rate by 225 basis points since May 2022.

The increase in repo rates has the greatest negative impact on borrowers. Due to the recent repo rate increase, existing borrowers who have taken out loans with floating interest rates, such as home loans, would experience an increase in their monthly payments. Many current house loan borrowers would have already used up their option to extend the term of their loans, forcing them to pay a higher EMI.

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