The Reserve Bank of India (RBI) increased the repo rate by 50 basis points to 5.40 per cent during its MPC meeting on Friday. Subsequently, several banks increased their lending rates with immediate effect, including Bank of India and Bank of India. it indicates that Rate of interest Home loans and other associated loans will increase for many borrowers.

Bank of India hike rblr ,repo based lending rate), up to 8.25 per cent as per the revised repo rate (5.40%) with effect from August 5, 2022. Earlier the RBLR of Bank of India was 7.75 per cent.

According to Bank of India website, “RBLR is 8.25% as per Revised Repo Rate (5.40%) with effect from 05/08/2022.”

influence of RLLR on Loan

Any change in the repo rate affects the lending rates of banks as banks borrow money from RBI at the repo rate.

Consequently, if an individual opts for RLLR home loan, his interest rates will rise or fall according to the repo rate fluctuations.

Bank Of India MCLR

With effect from August 1, 2022, Bank of India increased its marginal cost-based lending rate (MCLR) by 10 basis points (bps). As a result of this adjustment, the EMI payment will increase for the debtors repaying the loan under the MCLR regime.

This change has increased the one-year MCLR from 7.50 to 7.60 per cent. The overnight, one-month and three-month MCLR has been increased by 10 basis points to 6. The MCLR for six months and 3 years has been increased to 7.45 and 7.80 per cent respectively.