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ICICI Bank, BoB hike repo rate linked lending rates
May 05, 2022
After a mid-cyclic RBI rate hike, on Thursday, ICICI Bank raises the external benchmark lending rate by 40 bps to 8.10 percent. “ICICI Bank External Benchmark Lending Rate” (I-EBLR) is referred to RBI Policy Repo Rate with an increase over Repo Rate. I-EBLR is 8.10 percent p.a.p.m. effective May 4, 2022,” the bank mentioned on its site. Meanwhile, the Bank of Baroda also hiked the repo-linked lending rate by 40 bps to 6.90 percent.
The Reserve Bank of India (RBI) on Wednesday raised the benchmark lending rate or repo rate by 40 basis points (bps) to 4.40 percent. This was likewise the principal occurrence of the Monetary Policy Committee (MPC) making an unscheduled increase in the repo rate. The was also to contain expansion that has remained stubbornly over the target of 6% for the last three months.
Outside Benchmark Lending Rates (EBLR) are the lending rates set by the banks in view of outer benchmarks, for example, repo rate. This is the base financing cost at which business banks can lend. RBI presented the Base Lending Rate (BLR) framework in 2010, it moved to a Marginal Cost of Funds-based Lending Rate (MCLR) system in 2016, and in October 2019, it further introduced the External Benchmark-Linked Lending Rate (EBLR) regime.
At the point when the RBI climbs the Repo Rate, it implies that the expense of acquiring will be something else for business banks. In this way, since the RBI has expanded the repo rate, lenders like ICICI, and Bank of Baroda have hiked their repo-linked interest rates against home loans, car loans, and others.
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