If a salaried person has taken a home loan of Rs 75 lakh from ICICI Bank, then its floating interest rate will be from 8.1 to 8.85 percent. Here the interest rate of 75 lakh loan will be from 8.1 to 8.95 percent.
ICICI Bank hikes home loan interest rates
private sector banks, ICICI Bank (ICICI Bank) has increased the external benchmark lending rate by 15 basis points. According to the bank, the increased new rates have come into effect from September 30, 2022. Apart from this, the bank increased the marginal cost of funds based lending rate (MCLR) by 20 basis points on Saturday for all periods. Decision to increase external benchmark and MCLR RBI After increasing the repo rate of Rs. Recently, the Reserve Bank increased the policy repo rate or the rate of short term loans to banks by 50 basis points. With this, the repo rate has reached 5.90 percent. RBI has taken this step to deal with inflation.
ICICI Bank has said that the new rates of MCLR have come into effect from October 1, 2022. The bank has increased the MCLR by 20 basis points on all term loans. Now the 1-month MCLR from overnight has reached 7.85 percent. Three-month MCLR is 7.90 percent, 6-month MCLR is 8.05 percent and 1-year MCLR has reached 8.10 percent.
ICICI Bank has written on its website, customers can take home loans with attractive interest rates on floating and fixed rates. Customers are being given the facility of low EMI and prepayment charges on floating loan rates. According to the bank, the home loan facility is being provided to the customers with easy repayment options for 30 years. The external benchmark lending rate of ICICI Bank is similar to the policy repo rate of RBI. From September 30, it has been fixed at 9.25% annually.
What will be the effect on EMI
ICICI Bank’s loan rates have increased due to increase in repo rate and increase in MCLR. Due to this the EMI of the loan will increase, along with the interest rates will also increase. Floating interest rates are linked with the benchmark rate. As per RBI guidelines, floating rate home loans are linked to the external benchmark rate. The floating rate of ICICI Bank is linked to the repo rate of RBI. On this basis, after the change in the repo rate, a change in the interest rates of the home loan is also being seen. On this basis, the EMI will increase, which will be according to the change in interest rates.
How much will EMI increase?
If a salaried person has taken a home loan of Rs 75 lakh from ICICI Bank, then its floating interest rate will be from 8.1 to 8.85 percent. Here the interest rate of 75 lakh loan will be from 8.1 to 8.95 percent. If a person is self-employed, then the rate of interest on a loan of Rs 75 lakh will be from 8.20 percent to 9 percent. If the loan amount is more than Rs 75 lakh, then the rate of interest will be from 8.20 percent to 9.10 percent.
Suppose a customer took a loan of Rs 50 lakh for a tenure of 20 years. The interest rate before taking the loan was 9.10 percent, which has increased to 9.25 percent annually after increasing the rate by 15 basis points. If the loan of Rs 50 lakh was for a period of 20 years, earlier the customer was paying an EMI of Rs 45,308 at 9.10 percent interest. But after increasing the EBLR and the interest rate being 9.25%, the EMI reached Rs 45,793. In this way, the total amount will have to be paid as interest of Rs 59,90,401. In this way, the customer will have to pay a total of Rs 1,09,90,401 to repay the final loan.