Bank of India hikes home loan interest rates

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

Following the trend many banks including , , Bank of India raised their lending rates with immediate effect. This means many customers would face a hike in the interest rate on home loans and other related loans.

Bank of India hiked RBLR (Repo Based Lending Rate), with effect from June 8, 2022, is 7.75% as per the revised repo rate (4.90%).

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

According to the website, “The effective RBLR w.e.f from 08/06/2022 is 7.75% as per the revised Repo rate (4.90%).”

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

Also read: These 4 banks have hiked home loan interest rates
Also read: RBI hikes repo rate: How much your EMI will jump per lakh of loan?

Increase in EMI
The total rise in the repo rate after the current boost is 0.9 percent. Because of the central bank's rate hikes, lenders such as banks and housing finance businesses will raise their lending rates in response, which means your EMIs will rise as well.