Banks hike PLR, credit card charges

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Pune, Mumbai, Jul 15: Bank of Maharashtra (BoM) increased benchmark prime lending rate (BPLR) by 25 bp from Monday. The new BPLR is 13.50%. Interest rate on housing loans up to Rs 20 lakh will carry floating interest at 10% per annum for a repayment period of 0-5 years, 10.25% per annum for period of 5-10 years and 10.50% per annum for period of 10-20 years. The borrowers will have the option of fixed interest at 10.75% per annum for repayment period up to 5 years and 11.25%per annum for period between 5-10 years.

Interest rate on housing loans above Rs 20 lakh will carry floating interest at 10.25% per annum for repayment period up to five years, 10.75% per annum for period of 5-10 years and 11% per annum for period from 10-20 years. The fixed interest rate applicable will be 11% per annum for repayment period up to five years and 11.75% per annum for period of 5-10 years, a company statement said.

The private sector lender, HDFC Bank has also raised its monthly credit card charges ranging between 20 and 30 basis points. The new charges will come into effect from September 1. While the bank has increased its rates on classic card category to 3.25% from 2.95%, the new rates for the premium and super premium categories will now be 3.15% and 3.05%, respectively. Defending the hikes, Parag Rao, executive vice president of the bank, told FE that it was basically for two reasons which include price correction in line with the industry and because our cost of fund had gone up by 125-175 basis points within past three to four months.