After changing the Reserve Bank of India Repo Rate, ICICI Bank has changed its loan interest rates. Also, the interest on FD has been increased. Know what is the interest rate on.
For some customers of ICICI Bank, it is a matter of happiness, while some may also be disappointed. After the change in the policy interest rate (Repo Rate) of the Reserve Bank of India, the bank has increased the interest rates of its loans. Along with this, the interest on FD has also increased.
ICICI Bank increased MCLR by 0.40%
Within hours of the Reserve Bank increasing the repo rate by 0.40%, private sector ICICI Bank also increased its marginal cost of funds based loan interest rate (MCLR) by 0.40%. Now the MCLR of the bank will be 8.10%.
According to the bank’s website, it has increased its ICICI Bank External Benchmark Lending Rate (I-EBLR) linked to the repo rate at the same rate as the repo rate. The new rate will be of 8.10% which has come into effect from 4th May 2022.
The MCLR of any bank is, in fact, the minimum interest rate from which the bank cannot give loans at less interest.
The change in the RBI’s repo rate has also affected the investors investing in the bank’s FD product. ICICI Bank has increased the interest rate by 0.25% on fixed deposits of less than Rs 5 crore. The increased interest rates on FD have come into effect from May 5. FD interest rates range from 2.75% to 4.80% depending on the tenure.
Now customers will get 2.75% interest on FD of 7-29 days. Whereas it is now 3% for 30-60 days, 3.25% for 61-90 days, 3.50% for 91-184 days, 3.75% for 185-270 days, 271 days and less than one year 4%, 4.50% for 12-15 months, 4.60% for 15-18 months, 4.65% for 18 months to 2 years, 4.75% for 3 years and 4.80% for 3 years to 10 years will get interest.
Before ICICI Bank, HDFC has also increased its loan interest rate. HDFC has increased its Retail Prime Lending Rate (RPLR) by 0.05%. These new rates are valid from 1 May 2022. The bank has clarified that for customers applying for home loans under the Adjustable Rate Home Loan (ARHL) scheme, the new interest rate will increase by 0.05% and will be applicable from the reset date of their interest.