According to the Bank of India website, “The effective RBLR w.e.f from 05/08/2022 is 8.25% as per the revised Repo rate (5.40%).”
Impact of RLLR on loans
Any change in the repo rate has an impact on the banks’ lending rates because banks borrow money from the RBI at the repo rate.
As a result, if a person chooses an RLLR house loan, his interest rates will rise or fall in accordance with fluctuations in the repo rate.
Bank of India MCLR
With effect from August 1, 2022, Bank of India increased its marginal cost of funds-based lending rate (MCLR) by 10 basis points (bps). The EMI payments for debtors servicing loans under the MCLR regime would increase as a result of this adjustment.
The change increased the one-year MCLR from 7.50 to 7.60 percent. The overnight, one-month, and three-month MCLRs have been raised by 10 basis points, bringing them to 6. The six-month and 3-year MCLR has been raised to 7.45 and 7.80 percent, respectively.