Costlier EMIs on loans following RBI's interest rate hike could hit market demand

In line with the rate hike cycle, interest cost on consumers of retail and micro, small and medium enterprises will increase by Rs 686 billion, and affect sales.

FPJ Web DeskUpdated: Monday, December 12, 2022, 08:53 PM IST
article-image
PTI

More lenders from porivate and public sectors have joined the list of banks increasing their interest rates on loans in response to Reserve Bank of India's repo rate hike of 35 basis points. Loans are now costlier at Bank of Baroda, Karur Vysya Bank, RBL Bank, Bank of Maharashtra, Central Bank of India, Punjab National Bank, DCB Bank, UCO Bank, Bandhan Bank and Jammu and Kashmir Bank as the repo rate now stands at 6.25%.

Immediately after RBI's rate hike, Indian Bank, Indian Overseas Bank and Bank of India were first to raise repo-based lending rates. Almost 50% of all loans are linked to external benchmarks higher interest rates will increase costs as well. In line with the rate hike cycle, interest cost on consumers of retail and micro, small and medium enterprises will increase by Rs 686 billion, and affect sales.

While raising lending rates, RBI Governor Shaktikanta Das that they are closely monitoring the process of transmission as rate hikes are being passed on to lending and deposit rates faster than before.

(If you have a story in and around Mumbai, you have our ears, be a citizen journalist and send us your story here. )

(To receive our E-paper on WhatsApp daily, please click here.  To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Pramod The Coach Provides Best Digital Marketing Coaching Programs & Courses for Business Success

Pramod The Coach Provides Best Digital Marketing Coaching Programs & Courses for Business Success

India@75 – Celebrate Republic Day with AR

India@75 – Celebrate Republic Day with AR

Greenstat Hydrogen India Pvt Ltd And KPF Green Hydrogen & Ammonia Technology Pvt Ltd Partner In...

Greenstat Hydrogen India Pvt Ltd And KPF Green Hydrogen & Ammonia Technology Pvt Ltd Partner In...

Swift Money announces the appointment of ex-COO of ANZ Bank to its advisory board

Swift Money announces the appointment of ex-COO of ANZ Bank to its advisory board

Petrol, diesel prices, Jan 27: Check rates in Mumbai, Delhi, Chennai and other cities

Petrol, diesel prices, Jan 27: Check rates in Mumbai, Delhi, Chennai and other cities