Canara Bank increased repo rates linked lending rate to 8.30% from 7.80% earlier, after the Reserve Bank of India’s latest repo rate hike. The new rate will come into effect on August 7, 2022. The increase comes a day after the central bank in its monetary policy committee meet decided to raise repo rates by another 50 basis points, a third hike in the last 93 days.Canara Bank will charge an interest rate of 8.05% from women home loan borrowers while the rate for other borrowers will be 8.10%, according to the bank’s website.

For those with lower credit rating scores, deemed high-risk borrowers by banks, a credit risk premium of 0.05-2% will be charged over and above repo rate linked to lending rate. The effective home loan rate for high-risk borrowers will be between 8.35% and 10.30% from tomorrow.

Also, a concession of 25 basis points will be offered to low-risk borrowers till September 30, 2022, according to the bank’s website.

“The concession will be applicable to only Low-Risk Borrowers where new housing loans (all variants) sanctioned and disbursed during the period i.e., from 01.07.2022 to 30.09.2022.”

A concession of 5 basis points will be offered to women borrowers.

The RBI hiked the repo rate by 50 basis points or 0.5% on Friday, taking the overall increase to 1.4% in the last 93 days. Depositors, hurting due to high inflation and low rates, have reason to cheer due to rising rate momentum. The era of multi-year low fixed deposit rate is over and FD investors anticipate good returns on the horizon. The recent increase of 50 basis points, say from 6.5% to 7%, translates into an additional Rs 3.436 interest payout on an FD of Rs 1 lakh with a maturity period of 5 years.