Soon after the banking regulator Reserve Bank of India (RBI) raised repo rates by 50 basis points to 5.9 percent on September 30, a number of banks have raised their lending rates as expected — thus sending the home loan EMIs higher.
The banks that have raised the lending rates include State Bank of India (SBI), ICICI Bank, Yes Bank and Bank of India.
The state lender SBI raised its external benchmark-based lending rate by 50 bps to 8.55 percent and its repo-linked lending rate by the same margin to 8.15 percent.
The changes came into effect from Oct 1.
Another state lender Bank of India increased its MCLR (marginal cost of funds-based lending rates). The overnight MCLR has been raised by 10 bps to 6.95 per cent. The one-year MCLR rose by 10 bps to 7.8 per cent. At the same time, the three-year MCLR rose to 8 per cent.
At the same time, ICICI Bank raised its EBLR to 9.25 percent w.e.f. September 30. The lender's MCLR has been raised to 7.85 - 8.1 percent w.e.f. Oct 1.
Another private lender Yes Bank also raised he MCLR with its revised rates for overnight to one-year tenures in the range of 8.2 - 9.65 percent with effect from Oct 1.
“The RBI repo rate applicable from October 1 is 5.4 per cent. The bank shall add components in line with its spread framework. For existing loans linked to the six-month certificate of deposit rate, the rate applicable from October 1, 2022, is 6.79 per cent,” YES Bank wrote on its portal.
HDFC, too, raised interest rates on retail prime lending rates effective w.e.f. October 1. HDFC rose rates by 50 bps after RBI rose its repo rates.