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Private sector bank hikes home loan interest rates

Mumbai:  The equated monthly installment (EMI) of  home loan customers of ICICI Bank will surge as the lender has hiked its internal benchmark lending rate (IBLR). ICICI Bank increased its IBLR rate by 50 basis points (100 bps= 1%).  The lender also hiked its marginal cost of funds lending rate (MCLR).  The decision was taken as the Reserve Bank Of India hiked the key policy rates for the fourth time in this financial year.

The hike in the home loan interest rates will result in an increase in the EMIs of home loan customers.  But the  hike will depend on the benchmark with which customer’s home loan is linked.

Also Read: Unemployment rate in India slips down sharply 

‘ICICI Bank External Benchmark Lending Rate” (I-EBLR) is referenced to RBI Policy Repo Rate with a mark-up over Repo Rate. I-EBLR is 9.25% p.a.p.m. effective September 30, 2022.  The periodicity of the reset under MCLR shall correspond to the tenor/ maturity of the MCLR to which the loan is linked.’ said ICICI Bank.


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