Banks Hikes Rates, Might Be Bad News for Home Loans
Jun 08, 2018 Home Loan
Till now real estate market was apt for buying properties due to record low interest rates as well as decreased property prices. But this situation might seem to be over now. As several banks have increased their lending rates that will result in making loans costlier and thus buying property might not be cheap anymore.
Even before the Reserve Bank of India’s (RBI) bimonthly monetary policy review, two of the public and private sector banks have announced their plan of hiking interest rates. State Bank of India (SBI) has increased its marginal cost of funds-based lending rate (MCLR) by up to 10 basis points that are it has raised to 8.45 percent from 8.35 percent. Punjab National Bank (PNB), country’s second largest lender has also done the same by increasing its MCLR to 8.55 percent. While country’s second largest private bank, ICICI has increased its one year MCLR by 10 bps to 8.40 percent. Whereas HDFC has increased its retail prime lending rate (RPLR) by an equal number. The new rates are effective from June 1.
As per the experts, other banks too might follow the same move and announce an increase in interest rates soon. Experts are also in view that RBI might go for status quo on repo rate when it announces its monetary policy review.
Even before the Reserve Bank of India’s (RBI) bimonthly monetary policy review, two of the public and private sector banks have announced their plan of hiking interest rates. State Bank of India (SBI) has increased its marginal cost of funds-based lending rate (MCLR) by up to 10 basis points that are it has raised to 8.45 percent from 8.35 percent. Punjab National Bank (PNB), country’s second largest lender has also done the same by increasing its MCLR to 8.55 percent. While country’s second largest private bank, ICICI has increased its one year MCLR by 10 bps to 8.40 percent. Whereas HDFC has increased its retail prime lending rate (RPLR) by an equal number. The new rates are effective from June 1.
As per the experts, other banks too might follow the same move and announce an increase in interest rates soon. Experts are also in view that RBI might go for status quo on repo rate when it announces its monetary policy review.
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