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Bank of India Hikes Lending Rates by 25 Basis Points, EMIs Will Cost More
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News18•08-10-2026, 09:51
Bank of India Hikes Lending Rates by 25 Basis Points, EMIs Will Cost More
- •Following the Reserve Bank of India's decision to raise the repo rate, Bank of India has increased its Repo Based Lending Rate by 25 basis points.
- •The bank's RBLR has jumped from 8.10 percent to 8.35 percent, with the revised rates coming into effect starting October 7.
- •Existing borrowers on floating rates will see an increase in their monthly EMIs or an extension of their loan tenures.
- •Banking experts predict that other major public and private sector banks are likely to follow suit and hike lending rates soon.
Key Questions Answered
Following the Reserve Bank of India raising the repo rate by 25 basis points, Bank of India increased its Repo Based Lending Rate (RBLR) by 25 basis points, moving it from 8.10% to 8.35% effective October 7, 2026.
The RBI raised the repo rate from 5.25% to 5.50% to control retail inflation, which reached 4.82% in August, and to combat inflationary pressures driven by high international crude oil prices and import costs.
Existing borrowers with floating-rate retail loans, such as home or car loans, will see an increase in their monthly installment amounts or an extension of their loan tenures as banks pass on the higher lending rates.
