Following the rise in interest rates by the Reserve Bank, public and private banks have started raising interest rates. Private sector ICICI Bank hiked interest rates for the second time in a week. On Wednesday, June 8, the bank hiked the external factor I-EBLR (lending rate) by 0.50 per cent. Following the hike, the bank's external lending rate has come down to 8.60 per cent.
ICICI Bank had on June 1, 2022 announced revised interest rates on loans based on MCLR. Now, for the second time in a week, the bank has raised interest rates, making all types of loans more expensive. The monthly installments of home loans, auto loans and personal loans as well as business loans will increase significantly.
External benchmark lending rate (I-EBLR) has risen by 0.50 per cent to 8.60 per cent, according to ICICI Bank. Earlier, on May 5, 2022, the external benchmark lending rate was raised by 0.40 per cent.
Meanwhile, the bank had also hiked MCLR interest rates from June 1, 2022. From June 1, the MCLR will be 7.30 per cent for one day, 7.30 per cent for one month, 7.35 per cent for three months, 7.50 per cent for six months and 7.55 per cent for one year, ICICI Bank had said.
The credit policy was announced by the Reserve Bank on Wednesday. The bank raised the repo rate by 0.50 per cent. The repo rate of the Reserve Bank has been fixed at 4.90 per cent. The rise in interest rates for the second time in a month has hit borrowers hard. This increase in interest rates will make all types of loans, including home loans, more expensive.