LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

RBI hikes repo rate; this is what will happen to your EMIs

Your equated monthly installments (EMIs) may go up marginally after Reserve Bank of India (RBI) hiked repo rate, the rate at which it lends to banks, to 6.50%, a second consecutive hike of 0.25%. RBI, repo rate, 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
RBI hikes repo rate; this is what will happen to your EMIs
Your equated monthly installments (EMIs) may go up marginally after Reserve Bank of India (RBI) hiked repo rate, the rate at which it lends to banks, to 6.50%. Image source: Reuters
Written By: Manju AB
Updated: Thu, Aug 02, 2018
09:33 am
ZeeBiz WebDesk
RELATED NEWS
RBI Recruitment: Here's how to apply online on rbi.org.in for 841 vacancies across India | Check date, time and other details RBI Recruitment: Here's how to apply online on rbi.org.in for 841 vacancies across India | Check date, time and other details
Do you have money in this bank? Account holders cannot withdraw over Rs 1000 in cash; Know what you can do Do you have money in this bank? Account holders cannot withdraw over Rs 1000 in cash; Know what you can do
Petrol, Diesel prices may fall in next 2-3 days, Anil Singhvi hopes; Market Guru supports RBI call for tax cuts Petrol, Diesel prices may fall in next 2-3 days, Anil Singhvi hopes; Market Guru supports RBI call for tax cuts
#OperationHaftaVasooli RBI receives complaints against 1,509 digital lending apps #OperationHaftaVasooli RBI receives complaints against 1,509 digital lending apps
HDFC VC and CEO Keki Mistry, in chat with Anil Singhvi, reveals his views on Monetary policy announcements HDFC VC and CEO Keki Mistry, in chat with Anil Singhvi, reveals his views on Monetary policy announcements

Your equated monthly installments (EMIs) may go up marginally after Reserve Bank of India (RBI) hiked repo rate, the rate at which it lends to banks, to 6.50%, a second consecutive hike of 0.25%.

However, banks say that interest rate hike may not be sharp unless there is a sudden rise in credit demand. With bank credit continuing to show tepid growth, banks will have room only to hike rates marginally. So if you are planning to buy a house or a car, bankers say that should be availed at the earliest. And if you are an existing customer, you are likely to continue on the same rates until your reset date.

Rajnish Kumar, chairman, State Bank of India, told DNA Money, "Our asset liability committee is meeting on August 26. We will take a call then depending on our funding cost. But we may not hike our lending rates just yet. But certainly lending rates are going to remain stable with no possibility of it coming down." SBI controls about a quarter of the bank credit in the country.

SBI realigned its deposit rates with the market this week, hiking rates on retail deposits of below Rs 1 crore across longer maturities by 0.05% to 0.10% while interest rates on deposit of over two years have gone up by 0.1% and the hike on tenures of one year but less than two years was at 0.05%. This hike in deposit rates may lead to a small rise in lending rates. However, the bank maintained its MCLR at 7.90% to 8.45%, making it one of the lowest rates in the market. Close competitors like ICICI Bank has MCLR at 8.05% to 8.40% and HDFC Bank at 8.05% to 8.70%.

Crisil said in its report that bank credit is still not broad-based. "Bank credit continues to grow in double-digits, and logged 12.4% on-year growth as of July 20, 2018. However, growth was still not broad-based as industrial credit growth remains anaemic. As of June 2018, industrial credit (which accounts for 34% of gross bank credit) grew 1% on-year, while the services sector (which accounts for 26% of gross bank credit) and retail segment (which accounts for 25% of gross credit) logged double-digit growth of 23% and 18% over the previous year.

Watch this Zee Business video here:

Ashutosh Khajuria, executive director, Federal Bank, said, "The rise in lending rates happen with a lag. After deposit rates go up the lending rates will also rise, but only marginally because 90% of the funding cost of banks come from the term deposit, savings deposit and the current deposits. If term deposit rates go up, then the lending rates will go up. But two rate hikes with a neutral stance is a comfort for both bankers and borrowers."

The next monetary policy of the RBI will be announced on October 5. The six-member monetary policy committee voted 5:1 in favour of the rate hike while Ravindra H Dholakia, was the sole voter against a rate hike.

WHAT BANKERS SAY

  • If you are planning to buy a house or a car, bankers say that should be availed at the earliest  
  • If you are an existing customer, you are likely to continue on the same rates until your reset date

Source: DNA Money

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
RBIRepo Rate
RELATED NEWS
RBI Recruitment: Here's how to apply online on rbi.org.in for 841 vacancies across India | Check date, time and other details RBI Recruitment: Here's how to apply online on rbi.org.in for 841 vacancies across India | Check date, time and other details
Do you have money in this bank? Account holders cannot withdraw over Rs 1000 in cash; Know what you can do Do you have money in this bank? Account holders cannot withdraw over Rs 1000 in cash; Know what you can do
Petrol, Diesel prices may fall in next 2-3 days, Anil Singhvi hopes; Market Guru supports RBI call for tax cuts Petrol, Diesel prices may fall in next 2-3 days, Anil Singhvi hopes; Market Guru supports RBI call for tax cuts
#OperationHaftaVasooli RBI receives complaints against 1,509 digital lending apps #OperationHaftaVasooli RBI receives complaints against 1,509 digital lending apps
HDFC VC and CEO Keki Mistry, in chat with Anil Singhvi, reveals his views on Monetary policy announcements HDFC VC and CEO Keki Mistry, in chat with Anil Singhvi, reveals his views on Monetary policy announcements

LATEST NEWS

PPF vs NPS Calculator: Here is what will turn you into a crorepati and much more - Money Tip EXPLAINED

PUBG Mobile 1.3 global update: APK download link, check expected release date and more!

No external pressure: Parineeti Chopra on replacing Shraddha Kapoor in 'Saina'

MTAR IPO: Know allotment finalisation status, listing date and how to check subscription of shares

MTAR Technologies IPO Subscription details: Retail investors expect bumper listing

7th Pay Commission: After family pension, Modi government BIG relief on DA for central government employees likely soon, pensioners to benefit too

Yes Bank Share price: Target price Rs 14, Anand Rathi maintains Sell rating | Earning, valuation and key risks

Delhi govt presents 'Outcome Budget'; education, health departments top performers

Easy Trip Planners IPO date: Ventura Securities highlights details

Alert! WhatsApp may stop working on these smartphones | Is your phone on list? Check details NOW

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved