Banks gave a shock to the customers, loan became expensive, your EMI will increase

After growing the repo rate of the Reserve Bank of India (RBI), great deal banks in the country have also made their loans expensive. The country’s largest state-run bank State Bank of India has also made its loans expensive. Apart from this, numerous other banks have also made their loans expensive. To balance inflation, the Reserve Bank increased the repo rate by 0.50 percent on Friday. Since then, banks have also started growing their interest rates on loans.

According to the information given on SBI’s website, the external benchmark lending rate and the lending rate related to the repo rate have been increased by 50 basis points. After this increase, EBLR has become 8.55 percent and RLLR reached 8.15. The new rates will be effective from Saturday i.e. today.

Bank of India has increased the RBLR to 8.75 percent. ICICI Bank has also increased its EBLR and it has increased to 9.60 percent. EBLR is the interest rate below which banks do not allow lending. With the increase in the loan rate, the EMI of those people who have taken a loan on EBLR or RLLR will increase.

HDFC has increased the home loan interest rate by 0.50 percent. The new rate will be effective from October 1. This financial institution has increased interest rates for the seventh time in the last five months.

To control inflation, the Reserve Bank has increased the repo rate four times since May this year. The Reserve Bank on Friday publicized a hike in the repo rate for the fourth time, increasing it by 50 basis points. After this hike by RBI, the repo rate reached 5.90 percent. The Repo rate is the rate at which RBI gives loans to banks.

The retail inflation rate in the country has endured above the target limit set by the Reserve Bank of India for the eighth successive month. The data of retail inflation released the previous month, once again reached 7 percent in August. Earlier in the month of July, there was a decline in the retail inflation rate and it had come down to 6.71 percent. At the same time, it was 7.01 percent in June, 7.04 percent in May, and 7.79 percent in April. The government has set a target of keeping the inflation rate in the range of 2 to 6 percent, but despite all the efforts, it remains above.