Lenders raised interest rates on home loans following the Reserve Bank of India’s (RBI) benchmark rate hike. Read the details here
Several banks raised their reverse repo lending rate (RLLR) and their marginal cost of funds lending rate (MCLR). As a result, monthly equivalent payments (EMI) will become expensive for those who benefit from home loans compared to RLLR and MCLR.
The moves come after the Reserve Bank of India (RBI) hiked the repo rate by 50 basis points in its Monetary Policy Committee (MPC).
As a result, new and existing borrowers are witnessing an increase in interest rates on their loans.
Here is a list of banks that have recently revised mortgage rates:
HDFC Bank has increased its lending rate based on the marginal cost of funds-based lending rate (MCLR). According to the HDFC Bank website, as of November 7, 2022, the overnight MCLR is now 8.20% from 7.90% previously. The MCLR for one month is 8.25% versus 7.90%.
Canara Bank
The lender revised its reverse repo lending rate (RLLR) and increased its marginal cost of funds (MCLR) lending rate.
The bank increased the MCLR by 20 basis points on all mandates. Canara Bank raised rates on the overnight and one-month MCLR from 7.05% to 7.25%.
Bank of Maharashtra
Bank of Maharashtra said it has increased its MCLR for certain term loans. The benchmark one-year MCLR, used to price most consumer loans such as auto, personal and home loans, was revised up to 7.90% from 7.80%.
The one-month MCLR was raised by 5 basis points to 7.50%.
DCB Bank
DCB Bank revised the MCLR upwards by 27 basis points across all durations. The benchmark one-year MCLR rate is set at 10.23%.
The one-, three-, and six-month MCLRs were revised to 9.63%, 9.79%, and 10.02%, respectively.
| Banks | Starting interest rate (pa) | Processing fee |
| Kotak Mahindra Bank | 7.50% per year | 0.50% |
| Citibank | from 6.65% per year | Rs. 10,000 |
| Union Bank of India | from 8.25% per year | – |
| Bank of Baroda | 7.45% per year and more | |
| central bank of india | 7.20% per year to 7.65% per year | Rs. 20,000 |
| Bank of India | 7.30% per year | – |
| National Bank of India | from 8.55% per year | 0.35% and more |
| HDFC Home Loans | from 8.60% per year* | 0.5% or Rs 3,000, whichever is greater |
| LIC Housing Finance | from 7.55% per year | Rs. 10,000 -Rs. 15,000 |
(Source: Bankbazaar)
