New Delhi: EMIs are likely to get costlier as the State Bank of India, India’s largest bank has hiked lending rates by 10 basis points at 0.1 percent across all loan tenors. The hike has come into effect from April 15. Kotak bank and Bank of Baroda have also hiked rates essentially.
EMIs are going to go up for all kinds of loans whether it be home loan, vehicle loan, personal loan or any other loan. On April 18, SBI increased the marginal cost of lending rate (MCLR) by 10 basis points. Usually, an action by SBI is followed by other banks as well. A similar sort of action can be expected from other banks.
The hike in rates has been caused by inflation. The ongoing conflict between Russia and Ukraine is impacting also our economy, it is going to have a significant impact on the growth. It was seen in the last monetary policy of the RBI that there was no change in the interest rates, economists were expecting a hike because of inflation. However, it did not but the banks have now started doing it. And, it is going to get costlier from here on.
India has to see how long the crisis between Russia and Ukraine will continue. A lot will now depend on the geopolitical situation. The supply disruptions that are caused by it which are leading to the surge in inflation and surge in monthly EMIs. …Read More
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