After that, the Reserve Bank of India (RBI) raised rates on the repo rate by 50 basis points on September 30th, 2022; several banks in India, including SBI, ICICI Bank, and HDFC, have announced an increase in the rates of lending.
After an additional increase in a row, which is a 190-basis point increase, the apex bank recently increased the repo rate by 5.90 5 percent. One percentage point is equivalent to cents per basis.
Public lender SBI announced a rate increase by 50 basis points in its rate-linked mortgage rates. This means that SBI’s EBLR is now at 8.55 percent and its repo rate-linked lending rate is 8.15%. This will take effect starting on October 1st, 2022.
The housing finance firm HDFC has also announced a rate increase in the same amount that will take effect on October 1st, 2022.
The State-owned Bank of India has increased its repo associated with home loans to 8.75 percent, and privately-owned ICICI Bank will now charge a 9.60 percent interest rate on homeowners loans.
The rate increase by these banks will harm the spirit of homebuyers this Christmas when most homeowners make their purchases.
“The repo rate hike is likely to affect new home buyers since mortgage loan rates will rise, in value, increasing EMIs and decreasing the eligibility for new loans. This, along with the uncertainty in the economy, could create some delays in deciding on home buyers. However, we are confident that overall demand will remain strong,” said Rohan Pawar, the director for the Pinnacle Group.
“This decision of the RBI to increase the repo rate yet again before the holiday season may temporarily slow down the momentum of growth in the real estate industry,” said Kaushal Agarwal, the chairman of The Guardians Real Estate Advisory.
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