With the leading players in the banking sector viz State Bank of India and ICICI Bank increasing the Benchmark Prime Lending Rates (BPLR), both the home and car loans have become costlier.
ICICI Bank has hiked its BPLR and floating reference rate (FRR) by 50 basis points. FRR is applicable to consumer loans such as home loans.
SBI has also hiked its BPLR by 50 basis points raising the rate to 12.25%.
With rise in the benchmark fixed for loans, interest rates on loans are also ready to go up thus increasing the EMI payable by the borrower.
The hike in EMI will be based on the rate levied on the loan and also the duration which will differ from bank to bank.