What is the external benchmark-based lending rate?
The RBI in September 2019 established a system to link all new floating rate personal loans, retail loans and loans to micro and small businesses with an external benchmark. This was done to ensure efficient transmission of changes in key policy rates. Internal benchmarks such as Base Rate and MCLR were found not to effectively broadcast monetary policy decisions.
With the increase in i-EBLR, your EMI outlay will also increase. If the EMI for the current month is not yet deducted from your home loan as it is linked to i-EBLR, the bank will base the calculation of fresh EMI payment on the outstanding principle.
SBI has increased the external benchmark-based lending rate with effect from August 15, 2022. The rates have been increased from 7.55% + CRP + BSP to 8.05% + CRP + BSP. EBLR There is a combination of repo rate plus spread plus credit risk premium which is based on your credit score. Bank Repo Linked Lending Rate (RLLR) has been increased from 7.15% + CRP to 7.65% + CRP.
ICICI Bank
According to the bank’s website, “RBI policy repo rate with effect from August 5, 2022 is 5.40%. ICICI Bank External Benchmark Lending Rate” (I-EBLR) is referred to RBI policy repo rate with mark-up on repo rate. Is. The I-EBLR is 9.10% ppm with effect from August 5, 2022.”
Bank Of Baroda
Baroda Repo Linked Lending Rate (BRLLR) has increased. According to the bank’s website, the Baroda Repo Linked Lending Rate (BRLLR) has been increased with effect from August 6, 2022. For retail loans, the BRLLR is 7.95%. According to the bank’s website, the BRLLR is made up of the current RBI repo rate i.e. 5.40% and a mark-up/base spread of 2.55%.
Canara Bank
Canara Bank increased the lending rate linked to its repo rate by 50 basis points or 7.80% to 8.30%. On August 7, 2022, the new lending rate will be effective. A day before the revision of key policy rates by the Reserve Bank of India (RBI) by 50 basis points (100 basis points = 1%).
PNB hikes repo, external benchmark, linked lending rate to 7.90 per cent. According to the BSE filing, “Consequent to the increase in the repo rate by the RBI, the Repo Linked Lending Rate (RLLR) has been revised from 7.40 per cent to 7.90 per cent with effect from August 8, 2022.”