In a big blow to customers, the Bank of India (BoI) has announced an increase in their loan rates. It means that now taking loans will be costlier for the consumers in the future.
The Bank of India has announced an increase in the lending rates by 10 basis points, it is set to make the loans as well as the retails, more expensive. The increase announcement comes right before the monetary policy announcement scheduled to be made by the Reserve Bank of India on April 5.
During a regulatory filing on Saturday, the bank stated that the new rule will take effect on April 1. In a statement, the bank said, “The bank has increased the mark-up by 10 bps from the existing level of 2.75 per cent to 2.85 per cent, and with the present repo rate of 6.5 per cent, the repo-based lending rate (RBLR) will be 9.35 per cent.”
Furthermore, in another filing, the public sector lender Indian Bank has also increased their lending rate linked to the base rate and benchmark prime lending rate of 0.5 per cent. For Indian Bank, it is to be implemented from April 3.
Moreover, the HDFC Bank has raised its home loan interest rates by a significant amount, which stands at a reported 10-15 basis points, ranging between 9.05 per cent to 9.8 per cent. According to the bank, this decision was taken because of the merger between HDFC Bank and HDFC on July 1, 2023.
On the other hand, ICICI bank’s home loan interest rates range between 9 per cent to 10.05 per cent, valid till March 2024, according to its website. For the State Bank of India, the home loan interest rates are at 9.15 per cent to 10.05 and for the Axis Bank, it ranges between 8.75 per cent to 9.65 per cent, as per the information on their respective websites.
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