Key Points
And as it did through 2022, banks were quick to charge retail borrowers more on loans for buying cars, homes or vacations..
Central bank data showed banks raised their external benchmark-based lending rates (EBLRs) by 250 basis points during May 2022- March 2023, in line with the increase in the policy repo rate..
As per the central banks rules, all consumer, MSME and small business loans should be linked to EBLR while corporates can continue to borrow on MCLR linked rates...
The weighted average lending rate (WALR) on sanctioned fresh rupee loans increased by 173 bps and that on outstanding rupee loans by 95 bps during May 2022 to February 2023, Reserve Bank of India (RBI) data showed...
Retail loan has become a major contributor to the incremental lending with the external benchmarking of retail loan and sharp increase in benchmark rates have bolstered banks net interest income (NIM), according to India Ratings..
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