New Delhi: Home loan customers of Punjab National Bank (PNB) will now have to shell out more as the bank has hiked the interest rate on home loans. The bank has increased the repo-linked lending rate (RLLR) by 50 basis points (100 bps = 1%) from 7.70% to 8.40%. The bank has also hiked the marginal cost of funds lending rate (MCLR) by 0.05% on all tenures. The bank has announced a hike in base rate by 5 bps.
“The Base rate has been revised from 8.75% to 8.80% w.e.f. 01-10-2022,” said the bank’s website. The increase in the key policy rate by the Reserve Bank Of India (RBI) has resulted in a hike in interest rates by the bank.
The loan disbursed by the bank is linked to an external benchmark lending (EBLR). The old rate of interest charged on home loans by the bank was 7.90%. Due to the hike in the external benchmark lending rate by 50 bps the loan interest has now reached 8.40%. Due to this hike, home loan buyers will now have to pay more monthly EMIs.
Apart from PNB, State Bank of India (SBI), ICICI Bank, and mortgage lender HDFC Ltd have also announced a hike in the home loan interest rate from October 1, 2022.
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