Bank Hike Loan Rates, Interest rates on Home & Car Loans: Higher EMI Payments: Finance Trading Times

Bank Hike Loan Rates, Interest rates on Home & Car Loans: Higher EMI Payments

There comes the big news which everyone was afraid of - The largest players in the home loan and car loan markets have gone for a Home Loan Rate Hike and Car Loan Rate Hike, even the education loan is not spared, the Education Loan Interest Rate is hiked. Loan Rate Hike This is another big blow to the customers of loans in India, as the rate hike will really pinch them hard.
By what rate are the loan interest rates increased?
It is reported that the hike in interest rates for various loans is upto 0.75% or 75 basis points. It will mean that the customers who have opted for any kinds of loans will now have to shell out extra money while making EMI payments.

Any example of how much extra EMI will need to be paid for the increased loan interest rates ?
Although the interest rate increase will be varying from bank to bank and depending upon the type of loan, but here is an example.
If someone has taken a home loan of 20 lac for a period of 10 years at 9% interest rate will usually pay an EMI of around 25350.
However, if the interest rate on home loan is increased by 0.75% to 9.75%, then the EMI will increase to around 26,200. That is, clear hike of 850 Rs. or so.

Which banks have increased the loan interest rates ?
The news is about the benchmark prime lending rate (BPLR) increase.
PNB or Punjab National Bank, which is the second largest national bank of India, has increased BPLR by 75 basis points to 11.75%.
Corporation Bank , Bank of Baroda and Oriental Bank of Commerce have gone for 0.5% rate hike and now their BPLR stands at 12.50 per cent. IDBI increased BPLR is now at 13.25%, while Union Bank's is at 12.25%. Both have increased it by 50 bps.

The interesting thing is about the major players in the home loan market. State Bank or India (SBI), ICICI Bank and HDFC bank have not yet ome out with any info on hiked loan rates. These are the major players in the Indian Home loan and car loan market. However, it is expected that these banks will sooner or later increase their loan rates. Infact, HDFC bank has already increased the interest rates payable on Fixed Deposits. So it can anytime announce a hike in loan rates.

What is the reason for this increase in loan intrest rates?
The reason is said to be the CRR hike by Reserve Bank of India (RBI), which was declared on 27th July. Exxpectations are that there might be another rate hike by RBI anytime, as the inflation is still not under control. There is another monetary review expected on September 16th.

All these developments are hitting the common men really hard. Higher EMI's higher cost of living, uncertain job conditions and limited sources of income are making it a real problem for common man to survive
Have Comments or Questions? Please post them as comments using "Post our Comments" link below. Your queries will be responded for free in 24 hrs!

0 Comments: Post your Comments

Wish you all happy and fruitful trading and investing activities with safety! = = = Post a Comment

Copyright Information:
© Finance-Trading-Times.com
Please see Our Copy Right Policy. All the articles, posts and other materials on this website/blog are copyrighted to the author of this site. The content should NOT to be reproduced on any other website or through other medium, without the author's permission. Contact: contactus(AT)finance-trading-times.com

DISCLAIMER: Before using this site, you agree to the Disclaimer. For Any questions or comments, please mail contactus(AT)finance-trading-times.com.

About UsAdvertise with UsCopyRight Policy & Fair Use GuidePrivacy PolicyDisclaimer