announced that it had raised its benchmark lending rate by 5 basis points, a move that will increase the EMI for new and existing borrowers. A basis point is one hundredth of a percentage point.
“HDFC is increasing its Retail Prime Lending Rate (RPLR) on home loans, on which its adjustable rate home loans (ARHL) are referenced, by 5 basis points, effective June 1, 2022,” the company said in a statement. a statement.
This is the third time HDFC has increased its RPLR in the past month. In May, it raised rates twice for a total of 35 basis points.
ICICI Bank and
(PNB) announced a hike in their marginal cost-based lending rates (MCLR).
National Bank of Punjab
National Bank of Punjab (
), a public bank, raised its marginal cost of funds lending rate by 15 basis points. The increased rates come into effect on June 1, according to the PNB website.
ICICI Bank has also revised the marginal cost of funds-based lending rate with effect from June 1, 2022, according to its official website.
Bank of India
The Bank of India has also increased the marginal cost of funds based lending rate over a certain term with effect from June 1, 2022.
The marginal cost of funds (MCLR) lending rate was introduced as an alternative to the base rate system, and it serves as a benchmark for banks not to lend below. The MCLR varies by duration, which can range from one night to three years.
Interest rates are expected to rise in the coming months as geopolitical tensions, primarily stemming from Russia’s invasion of Ukraine, fueled global inflation fears. This caused the Reserve Bank to raise its inflation target earlier this month.