After HDFC, ICICI Bank has also made loans costlier. RBI’s Monetary Policy Committee (MPC) is meeting this week in which a decision can be taken to hike interest rates. It is believed that this time the repo rate can be increased by 50 basis points.
New Delhi: ICICI Bank, one of the largest private sector banks, on Monday increased the interest rate on loans by 0.15 percent. With the Reserve Bank of India expected to hike the policy rate this week, the bank has made this increase on all term loans. The second largest private sector bank has increased the marginal cost of funds based interest rate (MCLR). With this move of the bank, the monthly installment (EMI) of the loan will increase. Earlier, the country’s largest housing finance company Housing Development and Finance Corporation (HDFC) had increased its interest rates on loans. HDFC on Saturday increased its retail prime lending rate (RPLR). HDFC has increased the RPLR by 0.25%. The new rates have come into effect from August 1.
According to information available on ICICI Bank’s website, the one-year MCLR has been increased by 0.15 per cent to 7.90 per cent under the revised rates from August 1. At the same time, the interest rate of one day tenor will be 7.65 percent. One year MCLR is considered important for retail loans as it is linked to long-term loans of banks like housing loans. The bank has increased interest rates ahead of the meeting of the Monetary Policy Committee (MPC) of the Reserve Bank to be held this week. There is a possibility that the MPC will hike the policy rate repo to check inflation.
Which banks increased the rate
Earlier, home loan lender HDFC Ltd. raised the interest rate by 0.25 percent. Indiabulls Housing Finance Ltd. Also, the interest rate on housing loans and MSME (Micro, Small and Medium Enterprises) loans was increased by 0.25 percent. The new rates of the bank will be applicable from August 1 for new customers and from August 5 for existing borrowers. It is noteworthy that RBI’s Monetary Policy Committee meeting is being held this week in which a decision can be taken to hike interest rates. It is believed that this time the repo rate can be increased by 50 basis points. Earlier, the bank had increased the repo rate by 90 basis points in two tranches.