BOI Home Loan Interest Rates: Bank of India Increases Home Loan Interest Rates

The Reserve (RBI) raised the repo rate by 50 basis points, the second time in 36 days during the three-day meeting of its monetary policy committee on June 8. On Wednesday, the RBI raised the repo rate from 4.40% to 4.90%.

Following the trend of many banks including

, , Bank of India has raised its lending rates with immediate effect. This means that many customers would face an increase in the interest rate on home loans and other related loans.

The Bank of India raised the RBLR (Repo Based Lending Rate), with effect from June 8, 2022, by 7.75% according to the revised repo rate (4.90%).

As the repo rate increases, banks will borrow money from the RBI at a higher rate. The same will be passed on to customers, which will impact EMIs for other loans such as home loans, car loans, and personal loans.

According to the website, “effective RBLR wef from 08/06/2022 is 7.75% according to the revised Repo rate (4.90%).”

Earlier last month, “Bank of India said that the RBLR (Repo Based Lending Rate), as of 5 May 2022, is 7.25% according to the revised repo rate (4.4%)”.

Read also: These 4 banks have increased interest rates on mortgages

Also Read: RBI Raises Repo Rate: By How Much Will Your EMI Increase Per Lakh Loan?

Increase in NDEs

The total rise in the repo rate after the current boost is 0.9%. Due to central bank rate hikes, lenders such as banks and housing finance companies will increase their lending rates in response, which means your EMIs will also increase.

Bernadine J. Perkins