PNB, BOI, BOB hike loan interest rates

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New Delhi: After the increase in repo rate of Reserve Bank of India (RBI), many banks have started increasing the interest rate of debt. Public sector Punjab National Bank (PNB), Bank of Baroda (BOB) and Bank of India (BOI) have also increased 0.50 per cent in the repo linked lending rate (BRLR).

PNB has increased the repo based lending rates by 0.5 per cent and the loan interest rate from 6.9 per cent to 7.4 per cent. The increased new interest rates of the bank have come into effect from Thursday. BOB has also increased BRLR to 7.4 percent. The new BOB rates have come into force from June 9.

Apart from this, BOI has also increased the interest rate of loan by 0.5 percent. The BRLR rate of BOI has been increased from 7.25 per cent to 7.75 per cent. The bank’s new interest rates have become effective since June 8. Earlier, private sector ICICI also increased the loan interest rate by 0.50 percent.

It is noteworthy that the RBI had increased the policy interest rate (repo rate) to 4.9 percent a day before. Public and private sector banks have increased the repo linked lending rate after the Reserve Bank’s repo rate hike. After the increase in loan interest rate of banks, it will be more expensive to take auto and home loans and EMIs will also be impacted.

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