The Reserve Bank of India (RBI) hurriedly convened a meeting on Wednesday and increased the policy interest rates at an all-time low since May 2020. RBI increased the repo rates by 40 basis points to 4.40 per cent from 4 per cent. The common man had not yet recovered from this shock, that ICICI Bank also made loans expensive by increasing the External Benchmark Lending Rate (EBLR).
New Rates Applicable From May 4, 2022
Yes, after the announcement of the central bank, private sector lender ICICI Bank first announced a hike in its External Benchmark Lending Rate (EBLR). The bank has increased it by 40 basis points to 8.10 per cent. The new rates will be considered effective from May 4, 2022. The bank has shared the rate hike information on its website. Explain here that external benchmark lending rates are the lending rates set by banks based on external benchmarks like repo rate, which is the minimum interest rate at which commercial banks can lend. Banks add credit risk premium (CRP) on EBLR and RLLR while granting loans including home-auto.