ICICI Bank, Bank of Baroda Hike Repo-Linked Lending Rates by 40 bps
After a mid-cyclic RBI rate hike, on Thursday, ICICI Bank raises the external benchmark lending rate by 40 bps to 8.10 per cent.
- Last Updated:May 05, 2022, 10:53 IST
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After a mid-cyclic RBI rate hike, on Thursday, ICICI Bank raises the external benchmark lending rate by 40 bps to 8.10 per cent. “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 8.10 per cent papm effective May 4, 2022,” the bank mentioned on its site . Meanwhile, the Bank of Baroda also hiked the repo-linked lending rate by 40 bps to 6.90 per cent. The Reserve Bank of India (RBI) on Wednesday raised the benchmark lending rate or repo rate by 40 basis points (bps) to 4.40 per cent. This was also the first instance of the Monetary Policy Committee (MPC) making an unscheduled increase in the repo rate. The decision was taken to contain inflation that has remained stubbornly above the target of 6 per cent for the last three months.
What is The External Benchmark Lending Rate?
External Benchmark Lending Rates (EBLR) are the lending rates set by the banks based on external benchmarks such as repo rate. This is the minimum interest rate at which commercial banks can lend.
When the RBI hikes the Repo Rate, it means that the cost of borrowing will be more for commercial banks. So, now that the RBI has increased the repo rate, lenders like ICICI, and Bank of Baroda have hiked their repo-linked interest rates against home loans, car loans, and others.
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