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Friday, December 8, 2023

Bad News For ICICI Home Loan Customers, Bank Hikes Interest Rates

New Delhi: More trouble for ICICI Bank home loan customers as the bank has announced a hike in its internal benchmark lending rate (IBLR) by 50 basis points (100 bps= 1%) effective from September 30. The move comes after the Reserve Bank Of India hiked the key policy rates for the fourth time in this financial year. The bank has also hiked the marginal cost of funds lending rate (MCLR).Also Read – Middle Class To Be Hit Most As Home, Car Loans Get Costlier Ahead of Diwali. Why You Should Expect To Pay More

According to the bank’s website, “ICICI Bank External Benchmark Lending Rate” (I-EBLR) is referenced to RBI Policy Repo Rate with a mark-up over Repo Rate. I-EBLR is 9.25% p.a.p.m. effective September 30, 2022.” With respect to MCLR, the bank has hiked the interest rate by 10 bps. Also Read – Small Cities Trump Bigger Ones In Home Prices; Thanks To WFH And Freelance Jobs

How This Will Impact The Home Loan Customers:

The hike in the home loan interest rates will result in an increase in the EMIs of home loan customers. However, when the hike hits you will depend on the benchmark with which your home loan is linked. Also Read – HDFC Customer Alert! Bank Hikes Lending Rate, Home Loans to Get Costlier. Deets Here

According to the RBI guidelines, “ The periodicity of the reset under MCLR shall correspond to the tenor/ maturity of the MCLR to which the loan is linked.”

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