Higher home loan rates, auto insurance and three other changes expected in June
It always makes sense to keep in mind the changes taking place in the financial sector to ensure that your plans do not go astray. There are many changes, effective June, that can impact your life, from paying more for home loans and auto insurance to buying hallmarked gold jewellery, regardless of purity.
Here are five major financial and operational modifications you should be aware of.
High SBI Home Loan Interest Rates
SBI has increased its home loan by forty basis points (bps) beyond the benchmark-primary based full lending rate (EBLR). A bps is one hundredth of a percentage point. The development will take effect on June 1, 2022
If you are a State Bank of India home loan borrower, you can pay more Equated Monthly Installments (EMIs) from June onwards.
SBI has increased its home loan external benchmark-based lending rate (EBLR) by 40 basis points (bps). A bps is one hundredth of a percentage point. The increase will be effective from June 1, 2022. Earlier, SBI’s EBLR was 6.65 per cent, while the repo-linked lending rate (RLLR) was 6.25 per cent.
According to SBI’s website, EBLR is the sum of External Benchmark Rate (EBR) and Credit Risk Premium (CRP).
SBI had earlier announced a 10 bps increase in its marginal cost-based lending rates (MCLR) with effect from May 15, 2022.
Axis Bank hikes minimum balance limit
Axis Bank has increased the average monthly balance required for easy savings and salary programs in semi-urban and rural areas from Rs 15,000 to Rs 25,000. Alternatively, depositors should have a fixed deposit of Rs 1 lakh. Any shortcoming, usually, attracts punishment. The new minimum balance limit has come into effect from June 1.
The bank has also increased the limit for its Liberty Savings Account, which is a special account that allows depositors to either maintain a specified balance or spend so much from the account. This limit has been increased from Rs 15,000 to Rs 25,000. This means that the account holders will either have to maintain a monthly average balance of Rs 25,000 in their accounts or spend that much in a month through the account.
auto insurance rates to rise
The premium rates for third party motor insurance for two and four wheelers will increase from June. This policy provides a cover for damages caused to a third party.
The Ministry of Road Transport and Highways recently notified new rates under the Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules, 2022, which will come into effect from June 1, 2022.
For cars with engine capacity above 1000 cc, the premium rates have been increased from Rs 2,072 earlier to Rs 2,094, while for cars between 1000 cc and 1500 cc the premium will increase to Rs 3,416 from Rs 3,221 earlier. However, for engine capacity above 1500 cc, the premium will come down to Rs 7,890 from Rs 7,897.
Read here to know the change in premium for other vehicle categories – two wheelers and electric vehicles (EVs).
Gold hallmarking for all types
The Bureau of Indian Standards (BIS) notified in April that jewelers can sell only hallmarked gold jewelery in India, irrespective of its purity.
From June 1, 2022, jewelers can sell only hallmarked gold jewelery in India, irrespective of its purity, the Bureau of Indian Standards (BIS) notified in April. New districts have also been added to implement hallmarking of jewellery.
“The second phase of mandatory hallmarking will include additional three carats of gold jewellery/artifacts. 20, 23 and 24 carat, and 32 new districts under the mandatory hallmarking arrangement as mentioned in Indian Standard IS 1417, in which an AHC (Assay and Hallmarking Centre) has been set up after the implementation of the first phase of the mandatory hallmarking order. A release from the Press Information Bureau said.
A-EPS payment through IPPB will be chargeable
India Post’s subsidiary India Post Payments Bank (IPPB) has announced to implement the issuer fee for Aadhaar-enabled payment system (AEPS) from June 15.
The first three AEPS transactions every month will be free. Thereafter, each withdrawal or cash deposit will attract Rs 20 plus GST. According to an IPPB statement, mini statement transactions will attract Rs 5 plus GST. India Post Payments Bank is a subsidiary of India Post, governed by the Department of Posts.
