Higher loan rates to third-party motor insurance premiums
NEW DELHI: Interest rates on home, auto and personal loans have once again risen this month after the Reserve Bank of India (RBI) increased the repo rate in May. While some banks announced rate hikes immediately after the RBI’s decision, others have their interest rates on loans from June 1.
Here are some key changes that are likely to affect your money decisions from June. Interest rates on loans have gone upHousing Development Finance Corporation (HDFC) has raised interest rates on its home loans again, this time by 5 basis points, effective June 1. It had raised rates by 30 basis points last month post the hike in repo rate in an off-cycle meeting by the monetary policy committee (MPC).
Hence, interest rates for new customers have gone up by 35 basis points since May and for existing customers, it has gone up by 40 basis points because the mortgage lender had raised its interest rates by 5 basis points for existing borrowers before the rate hike occured.
Now, loans up to Rs 30 lakh will have an interest rate of 7.15 per cent; loans above Rs 30 lakh and up to Rs 75 lakh will have an interest rate of 7.40 per cent; and loans above Rs 75 lakh will carry an interest rate of 7.50 per cent. For women, rates will be 5 basis points lower in every segment.
ICICI Bank has increased its marginal cost of fund-based lending rate (MCLR) by 30 basis points, effective June 1. This comes after the MPC raised the benchmark repo rate to 4.40 per cent in an off-cycle meeting, due to upside risks to inflation. ICICI Bank had also raised its external benchmark lending rate by 40 basis points to 8.10 per cent in May.
Effective June 1, State Bank of India’s (SBI) external benchmark lending rate (EBLR) on home loans has increased to 7.05 percent from 6.65 percent. The bank’s repo-linked lending rate (RLLR) has risen to 6.65 per cent from 6.25 per cent. Under the regular home loans, SBI interest rates range from 7.05% to a maximum of 7.35%. There are 5 basis points concession available to women borrowers.
Bank of India also hiked marginal cost of funds-based lending rate on some tenore with effect from June 1, 2022. Axis Bank’s revised savings account chargesThe monthly balance requirement for easy savings and salary programs in Semi-urban/ rural areas has been increased from Rs 15,000 to Rs 25,000 or Rs 1 lakh term deposit. For a liberty savings account, the requirement has been increased from Rs 15,000 to Rs 25,000 or or spends Rs 25,000.
India Post Payment Bank savings account revised:The bank has cut its interest rate on all customer variants of Savings Accounts by 25 basis points effective from June 1, 2022.For saving deposits balances up to Rs lakh, interest rate is at 2% per annum from the previous 2.25% per annum.
For incremental balances above Rs 1 lakh to Rs 2 lakh, the interest rate is at 2.25% per annum from the previous 2.5% per annum. Union Bank of India revises savings account interest rates:Union Bank of India has changed its savings account interest rates from June 1.
An account holder who maintains a balance of up to Rs 50 lakh will earn 2.75 percent interest per annum. For balances from Rs 50 lakh to Rs 100 crore, the interest is 2.90 percent. For slabs higher than this, the rates range from 3.1 percent to 3.55 percent. Before this, the bank charged flat interest rate of 2.90 percent interest for all savings account holders.
Higher third-party motor insurance premiums:The annual rate of third-party insurance for private cars not exceeding 1000 cc has been fixed at Rs 2,094, up from Rs 2,072 in 2019-20. Under the new rates, third party insurance for private cars with an engine capacity between 1000 cc and 1500 cc has been raised to Rs 3,416 from Rs 3,221 in 2019-20.
Larger private vehicles that have an engine capacity above 1500 cc will see the premiums fall to Rs 7,897 from Rs 7,890. If a bike’s engine capacity is less than 75 cc, the new premium will be Rs 538, higher by 11 percent. For bikes with an engine capacity of 150cc to 350 cc, the premium will rise to Rs 1,366 from Rs 1,193. Some discounts have also been allowed: Discount of 15% for Educational institution buses.
Discounted price of 50% of the premium has been allowed to a private car registered as Vintage Car. Discount of 15 % and 7.5% on the premium for Electric and Hybrid Electric Vehicles, respectively. Double penalty for failure to link PAN with Aadhaar
The Central Board of Direct Taxes has imposed a fine for missing the March 31 deadline to link the permanent account number (PAN) with Aadhaar. The fine is Rs 500 if PAN and Aadhaar are not linked by June 30 and Rs 1,000 thereafter. June is the last month to link PAN with Aadhaar and save on paying double the penalty.
“In order to mitigate the inconvenience to the taxpayers, as per Notification No.17/2022 dated 29th March, 2022, a window of opportunity has been provided to the taxpayers upto 31st of March, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions. As a result, taxpayers will be required to pay a fee of Rs. 500 up to three months from 1st April, 2022 and a fee of Rs.1000 after that, while intimating their Aadhaar.”
The income tax department can also levy a penalty under section 272B for up to Rs 10,000 for not having an active PAN. LPG pricesOil marketing companies (OMC) have reduced the price of 19 kg commercial LPG cylinder by around Rs135 with immediate effect from June 1. In Delhi, the 19 kg commercial cylinder now costs Rs 2219.00 against Rs 2355.50 per cylinder.
In Mumbai, the LPG price has been reduced to Rs 2171.50 per cylinder from Rs 2,307. Buying property in capital to get costlierBuying property in New Delhi is set to become costlier as the recently unified Municipal Corporation of Delhi has decided to increase the transfer duty by 1 per cent on properties priced above Rs 25 lakh. The transfer duty will be 4 per cent for men and 3 per cent for women buyers.
At present, the transfer duty on the sale and purchase of property in Delhi is 2 percent for women and 3 percent for men. Gold hallmarkingFrom June 1, 2022, the second phase of mandatory hallmarking has taken ffect, making Hallmarking of gold jewellery/artifacts fully mandatory in the existing 256 districts and 32 new districts covered by Assaying and Hallmarking Centres (AHC).
Only gold jewellery and antiquities weighing 14, 18, 20, 22, 23, and 24 carats shall be sold in these 288 districts, and they must be sold compulsorily with hallmarking. American Express credit card holders will have to shell out additional charges for converting a purchase into an EMI transaction American Express cardmember now have to pay a processing fee of Rs 99 + taxes as applicable on all EMI transaction(s) converted at Point of Sale online or in-store.
The processing fee will only get reversed if the transaction is cancelled or refunded by the merchant and cardmember requests for the foreclosure of the EMI transaction(s) within 30 days from the date of transaction(s). Card holders also have to pay a fee of 2% of the transaction amount as the processing fee to avail of the post-purchase EMI conversion facility, unless waived otherwise. An interest rate of 14 percent per annum will be charged for converting large purchases into EMIs.