Loans of 10 banks became expensive in a week, interest on deposits did not increase, and the effect of increased repo rate

The RLLR of the state-run bank, bank of Baroda also increased by 0.50 percent to 8.45 percent. LLLR is the repo-linked rate. bank of India's RBLR is now 8.75 percent from 8.25 percent earlier.

In a week, about 10 banks have made loans costlier. But only a few banks have increased the interest on deposits. That too is much less than the debt. Most banks have made loans costlier by 0.50 percent. The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) raised the repo rate by 0.50% on 30 September. On the same day, three banks made the loan costlier.

There has been an increase of 1.90% in the installment of the customers who took the loan in 5 months. At that time the interest on the loan was 6.5% which is now above 8%. There was an interest of 5 to 6% on FD then which is still 6 to 7%. While the loan became costlier by around 2%, the interest on deposits has increased by only 1%.

HDFC Ltd made the loan costlier by 0.50% on september 30 and came into effect from october 1. Its Retail Prime Lending Rate (RPLR) is 17.95%. The minimum interest rate of a home loan is 8.60 percent. Similarly, private sector icici bank had gained 0.50 percent. Its external benchmark lending rate (BLR) stands at 9.25 percent.

SBI increased EBLR by 0.50 percent. Its EBLR is now 8.55 percent. State-owned punjab National bank (PNB) also increased the RLLR by 0.50%, taking it to between 7.70 and 8.40 percent. However, its basic rate (MCLR) stands at 8.80 percent.

The RLLR of the state-run bank, bank of Baroda, also increased by 0.50 percent to 8.45 percent. LLLR is the repo-linked rate. The RBLR of the bank of india has now increased to 8.75 percent from 8.25 percent earlier. It has also increased the basic rate by 0.20 percent which has now gone up to 9 percent. The MCLR i.e. basic rate of private sector Yes bank is currently at 9.25 percent, which used to be 8.75 percent earlier. On the other hand, some banks like Kotak bank, DCB bank, and indian bank have marginally increased FD rates which have now reached above 6 percent.