Explained: Difference between repo rates, MCLR, base rate and prime lending rate
3 years, 8 months ago

Explained: Difference between repo rates, MCLR, base rate and prime lending rate

Live Mint  

Borrowers had long complained that lenders were quick to increase interest rates on home loans when the Reserve Bank of India increased policy rates. How lenders decide on interest rates Lenders usually have an internal rate, which is the benchmark rate. New benchmark When none of these solved the problem, the central bank introduced a new method—external benchmark-based lending rates. Instead of looking at ways to make banks' internal benchmark rates more transparent, RBI said banks will need to link their floating rate loans to an external benchmark. Whenever RBI would cut or hike policy rates, the interest rate on your ongoing loan could rise or fall in the same proportion.

Loans Loan Interest Rates Interest Benchmark Rate Rbi Rates Base Existing Customers Lenders Policy Rates  lending  benchmark  prime  loan  banks  rate  lenders  rates  base  explained  rbi  loans  difference  mclr  repo  interest

History of this topic

HDFC Bank hikes MCLR for short-term loans. What borrowers need to know
2 weeks, 2 days ago

HDFC Bank hikes MCLR for short-term loans. What borrowers need to know

India Today  

HDFC Bank has increased its marginal cost of funds-based lending rate on short-term tenures by up to 5 basis points, effective December 7, 2024. Introduced by the Reserve Bank of India in 2016 to replace the base rate system, MCLR reflects the actual cost of funds for banks. A lower MCLR means lower interest rates and EMIs, while a higher …

RBI monetary policy: Repo rate to remain unchanged at 6.5%, says Shaktikanta Das
2 weeks, 5 days ago

RBI monetary policy: Repo rate to remain unchanged at 6.5%, says Shaktikanta Das

Firstpost  

RBI Governor Shaktikanta Das has announced that the Monetary Policy Committee has decided to keep the repo rate, the interest rate at which RBI lends to banks, unchanged at 6.5% The new monetary policy committee of the Reserve Bank of India, led by Governor Shaktikanta Das, will announce the policy interest rate today, which currently stands at 6.5 per cent.File …

Lending rates: Top 5 banks charge these MCLR across tenures on floating rate loans
1 month ago

Lending rates: Top 5 banks charge these MCLR across tenures on floating rate loans

Live Mint  

If you are planning to raise a floating rate loan such as home loan, it is vital to know the MCLR rates which the banks are currently charging. HDFC Bank: HDFC Bank's overnight MCLR is 9.15 percent, one month MCLR is 9.2 percent, 3-month MCLR is 9.3 percent, 6-month MCLR is 9.45 percent, one year MCLR is 9.45 percent, two …

HDFC Bank raises MCLR lending rates for THESE tenures; check here
1 month, 2 weeks ago

HDFC Bank raises MCLR lending rates for THESE tenures; check here

Live Mint  

HDFC Bank on Thursday raised its marginal cost of lending based rates by 5 basis points across three tenors. As per the latest rates which came into force on Nov 7, the MCLR rate for overnight now stands at 9.15 percent, which is 5 basis points higher than the earlier rate. The lending rates for other tenures i.e., 3 months, …

‘Monetary policy actively disinflationary’: RBI keeps repo rate unchanged at 6.5%
1 year ago

‘Monetary policy actively disinflationary’: RBI keeps repo rate unchanged at 6.5%

Hindustan Times  

The Reserve Bank of India on Friday maintained its benchmark repo rate at 6.5%, keeping its focus on anchoring inflation and boosting growth. Monetary policy will remain actively “disinflationary”, RBI Governor Shaktikanta Das said after a two-day meeting of the bank’s six-member monetary policy committee. He said that the central bank’s successive policy rate hikes, a reference to increases in …

RBI Watching Inflation Like a Hawk, But Keeps Rates in Check For Festive Cheer
1 year, 2 months ago

RBI Watching Inflation Like a Hawk, But Keeps Rates in Check For Festive Cheer

News 18  

The inflation genie is not back in the bottle yet, with sub-optimal Kharif sowing in pulses and oilseeds expected to lead to an increase in dal and cooking oil prices going forward. Such weighty inflation considerations could have pushed the Reserve Bank of India to raise lending rates in its bi-monthly monetary policy review, which concluded on Friday morning. Anuj …

RBI MPC Decisions: Here's What India's Middle Class Needs To Know
1 year, 2 months ago

RBI MPC Decisions: Here's What India's Middle Class Needs To Know

News 18  

The Reserve Bank of India on Friday decided to keep the policy rate unchanged for the fourth time in a row as it maintains a tight vigil on inflation. Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das said the Monetary Policy Committee unanimously decided to keep the repo rate unchanged at 6.5 per cent. According to him, the growth …

How RBI policy outcome will impact home loan borrowers explained
1 year, 4 months ago

How RBI policy outcome will impact home loan borrowers explained

Live Mint  

The Reserve Bank of India has released a key proposal with the goal of improving both the flexibility and transparency of rates of interest on variable-rate loans. The framework will require Regulated Entities to clearly communicate with borrowers for resetting the tenor and/or EMI; provide options for switching to fixed-rate loans or foreclosure of loans; disclose various charges incidental to …

RBI keeps repo rate unchanged in third straight policy meet
1 year, 4 months ago

RBI keeps repo rate unchanged in third straight policy meet

Deccan Chronicle  

Mumbai: The Reserve Bank of India in its three-day monetary policy committee meeting unanimously decided to keep the repo rate unchanged at 6.5 per cent, something most financial markets had expected. RBI Governor Shaktikanta Das on Thursday at a press conference said, "Monetary Policy Committee decided unanimously to keep the Repo Rate unchanged at 6.50%" RBI typically conducts six bi-monthly …

SBI hikes lending rates by 10 bps across tenures; loan EMIs set to rise
1 year, 10 months ago

SBI hikes lending rates by 10 bps across tenures; loan EMIs set to rise

Live Mint  

The country's largest lender, State Bank of India has hiked the marginal cost of funds-based lending rate by 10 basis points across tenures, making most consumer loans such as auto or home loans costlier for borrowers. The overnight MCLR rate has been revised upward by 10 bps to 7.95 per cent from 7.85 per cent, while that of one month …

PNB, Bank of Baroda raise lending rates by up to 25 bps after repo rate hike
1 year, 10 months ago

PNB, Bank of Baroda raise lending rates by up to 25 bps after repo rate hike

Live Mint  

Public sector lenders Punjab National Bank and Bank of Baroda have raised their lending rates by up to 25 basis points following the interest rate hike by Reserve Bank of India earlier this week. Punjab National Bank announced that it has effected a 25 basis point increase in the repo linked lending rate from 8.75 per cent to 9 per …

How RBI’s 25 bps repo rate hike could impact your loan EMIs
1 year, 10 months ago

How RBI’s 25 bps repo rate hike could impact your loan EMIs

Live Mint  

As widely speculated, the Reserve Bank of India has hiked the repo rate for the sixth time in a row, by 25 bps to 6.50% with immediate effect. After the RBI's latest repo rate hike on February 8, banks are expected to raise interest rate in retail loans. So, it's of utmost importance for a common man to know how …

Home Loan, Car Loan EMIs to Increase as RBI Hikes Repo Rate by 35 bps; What Should Borrowers Do
2 years ago

Home Loan, Car Loan EMIs to Increase as RBI Hikes Repo Rate by 35 bps; What Should Borrowers Do

News 18  

RBI MPC Meeting December 2022: The Reserve Bank of India has increased the repo rate by 35 basis points to 6.25 per cent in its December Monetary Policy Committee meeting. Atul Monga, CEO and co-founder of BASIC Home Loan, said: “An increase in interest rates will be felt especially by the new borrowers, existing borrowers will not usually be affected …

Axis Bank hikes MCLR rates by 25 bps across tenors
2 years, 2 months ago

Axis Bank hikes MCLR rates by 25 bps across tenors

Live Mint  

Private lender Axis Bank on Tuesday said it has increased the marginal cost of funds based lending rates by 25 basis points across tenors with immediate effect. Axis Bank in a communication on its website stated that the benchmark one-year MCLR is up by 25 basis points to 8.35 per cent with effect from October 18, 2022. The hike in …

Narendra Modi and Indian economy: What do the hard facts on repo rate, credit policy, inflation, EMIs say
2 years, 4 months ago

Narendra Modi and Indian economy: What do the hard facts on repo rate, credit policy, inflation, EMIs say

Firstpost  

The Repo rate, the rate at which RBI lends money to commercial banks, was hiked by 0.5 per cent or 50 basis points to 5.4 per cent on 5 August 2022. While the RBI expects the CPI to fall to 5 per cent only by the June 2023 quarter, there is good reason to believe India could see inflation tapering …

ICICI Bank, PNB, Bank of Baroda, Canara Bank Raise Loan Rates
2 years, 4 months ago

ICICI Bank, PNB, Bank of Baroda, Canara Bank Raise Loan Rates

News 18  

After the RBI’s Monetary Policy Committee in its latest policy review hiked the repo rate by 50 basis points to control inflation, ICICI Bank, PNB, Bank of Baroda, Canara Bank have raised their lending rates. Bank of Baroda said retail loans will now have an interest rate of 7.95 per cent, reflecting a spread of 2.55 per cent over the …

MCLR: What is it and why is preferred over the base interest rate for loan EMIs?
2 years, 5 months ago

MCLR: What is it and why is preferred over the base interest rate for loan EMIs?

Live Mint  

The Reserve Bank of India establishes the MCLR, or marginal cost of funds-based lending rate, as an internal reference rate for banks. The MCLR allows RBI interest rate modifications to be notified to borrowers relatively fast, with monthly updates to the MCLR. This is because banks frequently argued that they were unable to pass along the lower interest rates to …

Impact of rate hike on real estate market and home buyer sentiments
2 years, 6 months ago

Impact of rate hike on real estate market and home buyer sentiments

Live Mint  

Many lending institutions have recently hiked their lending rates after an off-cycle rate increase by the Reserve Bank of India in May. HDFC has announced that it has raised its benchmark lending rate by 5 basis points, a move that will increase EMI for new and existing borrowers. We are on a landscape of rising interest rate and increasing property …

RBI repo rate hike effect: These banks raised rates on lending, deposits
2 years, 7 months ago

RBI repo rate hike effect: These banks raised rates on lending, deposits

Live Mint  

Right after the Reserve Bank of India raised India's repo rate by 40 basis points, the banking sector mimicked the same by increasing interest rates in lending and deposit schemes. Here's a list of banks that have raised their interest rates on either lending benchmarks or fixed deposits or savings after RBI's repo rate hike. It said on its website, …

ICICI, Bank of Baroda, Bank of India hike interest rates on all types of loans
2 years, 7 months ago

ICICI, Bank of Baroda, Bank of India hike interest rates on all types of loans

India TV News  

Highlights RBI on Wednesday in a surprise move hiked the benchmark lending rate to 4.40% to contain inflation It marks the start of an upward cycle in borrowing costs in the last three years Commercial banks have already started increasing interest rate on all types of loans soon Private sector lender ICICI Bank has revised its external benchmark lending rate …

ICICI, BoB, BoI, Central Bank revise lending rates after RBI's repo rate increase
2 years, 7 months ago

ICICI, BoB, BoI, Central Bank revise lending rates after RBI's repo rate increase

The Hindu  

Private sector lender ICICI Bank revised its external benchmark lending rate to 8.1%, and state-owned Bank of Baroda raised the rate to 6.9% with immediate effect after the RBI raised the key repo rate. In an out-of-turn Monetary Committee Meeting, the Reserve Bank on Wednesday announced to hike the benchmark repo rate -- the short term lending rate it charges …

Impact of RBI's repo rate hike on borrowers, investors and the economy
2 years, 7 months ago

Impact of RBI's repo rate hike on borrowers, investors and the economy

Business Standard  

In an unscheduled press briefing yesterday, RBI Governor Shaktikanta Das has said that the Monetary Policy Committee’s off-cycle meet had unanimously voted to hike rates.The rationale behind this decision was the upside risks posed by global factors to India’s inflation trajectory. Meanwhile, the marginal standing facility rate and the Bank Rate stand adjusted to 4.65 per cent.However, the Monetary Policy …

Explained: How changes in repo rates affect stock markets
2 years, 7 months ago

Explained: How changes in repo rates affect stock markets

Hindustan Times  

The Reserve Bank of India on Wednesday increased the key policy rate by 50 basis points to set it at 4.9 per cent. This is the second consecutive increase in the repo rate after May's off-cycle meeting of the Monetary Policy Committee yielded a 40 bps hike to bump it from 4 to 4.4 per cent. Repo rate is the …

Why a hike in MCLR by banks may not affect you
2 years, 7 months ago

Why a hike in MCLR by banks may not affect you

Live Mint  

Bank borrowers would have heaved a sigh of relief when the Reserve Bank of India recently left the repo rate unchanged. Several banks such as the State Bank of India, Bank of Baroda and Axis Bank recently hiked their marginal cost of funds-based lending rate by 5-10 basis points across tenures. No impact All existing floating rate bank loans are …

Explained: What are repo rate, reverse repo and monetary policy
2 years, 8 months ago

Explained: What are repo rate, reverse repo and monetary policy

Hindustan Times  

The Reserve Bank of India on Wednesday increased the repo rate by 40 basis points - setting it at 4.4 per cent in an unscheduled policy review meeting as it intensifies the battle against inflation levels that have outpaced expectations for much of the year so far. READ: RBI holds key rates at record lows, ups inflation forecast The surprise …

RBI monetary policy: Inflation to hit 5.7%, GDP growth projected at 7.2%
2 years, 8 months ago

RBI monetary policy: Inflation to hit 5.7%, GDP growth projected at 7.2%

India Today  

The Reserve Bank of India on Friday kept the repo rate unchanged at 4 per cent. The reverse repo rate also remained the same at 3.35 per cent. GDP GROWTH, INFLATION The central bank has lowered its gross domestic product rate projection to 7.2 per cent for the ongoing financial year of 2022-23 from an earlier estimate of 7.8 per …

Interest rates & inflation: Why does RBI tinker with the repo rates?
2 years, 10 months ago

Interest rates & inflation: Why does RBI tinker with the repo rates?

Live Mint  

When the general prices of goods and services march northward, the phenomenon is known as ‘inflation’. For this, the central bank adheres to its monetary policy wherein it changes the repo rate to influence the purchasing power of consumers, thus impacting the prices of goods and services. A repo rate is the rate of interest charged by RBI from commercial …

Home loans get cheaper as SBI cuts lending rates
4 years, 6 months ago

Home loans get cheaper as SBI cuts lending rates

The Hindu  

Country’s largest lender State Bank of India has reduced the marginal cost of fund based lending rate by 25 bps across all tenors. The lending rate reduction comes after Reserve Bank of India cut the repo rate by 40 bps in May. Following the repo rate cut, the lending rates of SBI which are linked to the repo rate, are …

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