EMI payments are set to add more pressure to your budget as banks have already started to pass on the unexpected rate hike from RBI onto the customers.
ICICI Bank raised its external benchmark lending rate by 40 basis points to 8.10%. Shortly after the RBI announcement, ICICI Bank announced the rate hike on their website stating, “the 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 8.10% p.a.p.m. effective May 4, 2022.”
Bank of Baroda also hiked the repo-linked lending rate by 40 bps to 6.90%. The interest rates if you are an borrower linked to repo rate or any other interest rate benchmarks, both internal as well as external, will remain the same till the next reset date of your loans.