Increased burden on your pocket, interest rates on loans increased, now you will increase EMI

The increase for PNB is of 20 basis points (100 basis points means one per cent). The new rates will be effective from 1st March.

ew Delhi: Three major banks, State Bank of India, Punjab National Bank and ICICI Bank have announced increase in interest rates on loans. While SBI has increased the MCLR by 4 per cent, the increase for PNB is 20 basis points (100 basis points mean one per cent). The new rates will be effective from 1st March.

Marginal cost of funds based on landlending rate i.e. MCLR is made for the interest rate on the loan. This system started from 1st April 2016. In this system, the cost of money mobilized from different sources is made. These rates are fixed for different periods. ULF banks of MCLR add their margins and thereby fix the interest rate for various types of loans. However, loans were given on the base rate before the first of April 2016, but those who have taken loans on the base rate from 1st April this year, their loans will now be based on MCLR. MCLR is more close to the reality of the market.

SBI, the country's largest government bank, has increased the MCLR by 10 basis points to 25 basis points for different periods. The most important one is the MCLR for one year, which will be 8.15% at 7.95%, i.e. increase of 20 basis points. For home loan, the bank adds margins of 35 to 45 basis points. It means that where the home loan interest rate for women loans up to Rs 75 lakh was 8.30 per cent, it would now be eight to eight per cent, while on the other hand, interest rates for Baxios would be 8.55 per cent, instead of 8.35 per cent.

Punjab National Bank has increased the 15 basis points in MCLR for different periods. Thus, the one-year MCLR will be 8.30 per cent instead of 8.15 per cent. In case of home loan, the bank imposes margin of 35 basis points for women and 35 basis points for the rest, in that case the interest rate for home loans for women is 8.5% and that of State Bank of India will be 8.55%, i.e. State Bank of India Equal to.

After the two major government banks, it is expected that the rest of the government banks will increase the interest rate soon. Interestingly, the Reserve Bank has not raised any policy interest rates so far, but due to the increase in the cost of the deposit, the banks are making loans expensive. SBI raised interest rates on deposits on Wednesday, while PNB raised the hike from 1st March.

Let's take a look at the difference in interest rates, what will be the difference between monthly installment of home loan i.e. EMI: