Banks raise lending rates

After RBI’s move to increase repo rate by 35bps, a number of lenders hiked their benchmark lending rates, a move that would result in higher EMIs.

The effective repo-based lending rate (RBLR) with effect from December 7 is 9. 1%, Bank of India posted on its website. Private sector HDFC Bank has hiked its marginal cost of funds-based lending rate (MCLR) effective.

The one-year MCLR, which acts as benchmark for many loans, was increased by 50bps to 8. 6%, HDFC Bank website said. ICICI Bank raised its MCLR rate effective December 1. Following the revision, the one-year benchmark rate was raised by 10bps to 8.4% from 8. 3% earlier.