Indian After the Reserve Bank of India (RBI) increased the repo rate by 0.25 percent on Wednesday, many banks of the country have increased the loan interest rates. After increasing the repo rate on Wednesday, many big banks including Punjab National Bank (PNB), Indian Bank and Bank of Baroda have announced increase in their loan interest rates by up to 0.25 percent. That is, loans will become expensive for customers taking loans from these banks.
Repo rate increased to 5.50 percent
RBI On Wednesday, it increased the repo rate by 0.25 percent to 5.50 percent. This is the first increase in about 4 years. The Reserve Bank has indicated further increase in the repo rate amid rising inflation and ongoing fall in the rupee.
PNB increased RLLR from 8.10 percent to 8.35 percent
PNB said in the information given to the stock market that after increasing the repo rate of RBI, it has increased the repo linked interest rate (RLLR) from 8.10 percent to 8.35 percent. The new rate will be applicable from October 8. However, PNB, the country’s second largest public sector bank, said that there has been no change in its marginal cost based lending rate (MCLR) and base rate.
Indian Bank, Bank of Baroda, Bank of India and Indian Overseas Bank increased interest rates.
Chennai-based public sector Indian Bank has also increased its repo-linked benchmark lending rate (RBLR) from 7.95 percent to 8.20 percent. According to the bank, the new rate will be effective from October 8. Bank of Baroda has increased its repo based lending rate from 7.90 percent to 8.15 percent. Bank of India and Indian Overseas Bank have also increased their repo based lending rate (RBLR) to 8.35 percent. These new rates will be applicable from October 8.
Private sector banks also made loans expensive
Private sector Tamilnad Mercantile Bank has also increased its repo linked loan rate from 8.25 percent to 8.50 percent. Other banks and financial institutions are also expected to increase their benchmark lending rates in line with the RBI decision. Let us tell you that repo rate is the interest rate at which RBI gives loans to banks. Increase in repo rate generally makes it more expensive for banks to raise funds and this may impact the interest rates on new loans.
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