Increase in auto liability insurance premium loan rates: significant monetary changes from June 1

NEW DELHI: Interest rates on home, car and personal loans rose again this month after the Reserve Bank of India (RBI) raised the repo rate in May. While some banks announced rate hikes immediately after the RBI decision, others have their interest rates on loans from June 1. Here are some key changes that may affect your financial decisions from June.
Interest rates on loans have increased
The Housing Development Finance Corporation (HDFC) again raised interest rates on its home loans, this time by 5 basis points, effective June 1. It had raised rates by 30 basis points last month after the repo rate was hiked at an off-cycle meeting. by the Monetary Policy Committee (MPC). Thus, interest rates for new customers have increased by 35 basis points since May and for existing customers they have increased by 40 basis points because the mortgage lender increased its interest rates by 5 basis for existing borrowers before the rate hike. . Now, loans up to Rs 30 lakh will have an interest rate of 7.15%; loans above Rs 30 lakh and up to Rs 75 lakh will have an interest rate of 7.40%; and loans above Rs 75 lakh will carry an interest rate of 7.50%. For women, rates will be 5 basis points lower in each segment.
ICICI Bank has increased its marginal cost of funds-based lending rate (MCLR) by 30 basis points, effective June 1. This comes after the MPC raised the benchmark repo rate to 4.40% in an off-cycle meeting, citing upside risks to inflation. ICICI Bank also raised its external key rate by 40 basis points to 8.10% in May.
Effective June 1, the State Bank of India’s (SBI) External Benchmark Lending Rate (EBLR) on home loans was reduced from 6.65% to 7.05%. The bank’s repo-linked lending rate (RLLR) fell from 6.25% to 6.65%. On ordinary home loans, SBI interest rates range from 7.05% to a maximum of 7.35%. A concession of 5 basis points is offered to female borrowers.
The Bank of India has also increased the marginal cost of funds based lending rate over a certain term with effect from June 1, 2022.
Axis Bank savings account revised fees
The required monthly balance for savings and easy pay schemes in semi-urban/rural areas has been increased from Rs 15,000 to Rs 25,000 or Rs 1 lakh time deposit. For a Freedom Savings Account, the requirement has increased from Rs 15,000 to Rs 25,000 or or spend Rs 25,000.
Revised India Post Payment Bank Savings Account:
The bank has reduced its interest rate on all customer variants of savings accounts by 25 basis points effective June 1, 2022. For additional balances above Rs 1 lakh to Rs 2 lakh, the interest rate is 2.25% per year compared to the previous 2.5% per year.
Union Bank of India revises savings account interest rates:
The Union Bank of India has changed the interest rates for its savings accounts from June 1. An account holder who maintains a balance of up to Rs 50 lakh will earn 2.75% interest per annum. For balances of Rs 50 lakh to Rs 100 crore, the interest is 2.90%. For slabs above this, the rates range from 3.1% to 3.55%. Previously, the bank charged a fixed interest rate of 2.90% to all savings account holders.
Higher motor vehicle liability insurance premiums:
The annual liability insurance rate for passenger cars not exceeding 1000 cc has been set at Rs 2,094, up from Rs 2,072 in 2019-20. Under the new tariffs, liability insurance for private cars with engine capacity between 1000 cc and 1500 cc has been increased to Rs 3,416 from Rs 3,221 in 2019-20. Larger private vehicles that have an engine capacity above 1,500cc will see premiums drop to Rs 7,897 from Rs 7,890. If a bike’s engine capacity is below 75cc, the new premium will be Rs 538, 11 higher %. For motorcycles with a cylinder capacity of 150 cc to 350 cc, the premium will increase from Rs 1,366 to Rs 1,193.
Some reductions have also been authorized:
15% discount for buses from educational institutions.
A reduced price of 50% of the premium was granted to a private car registered as Vintage Car.
15% and 7.5% premium discount for electric and hybrid vehicles, respectively.
Double penalty in case of non-binding of the PAN with Adhar
The Central Board of Direct Taxation has imposed a fine for missing the March 31 deadline to link the Permanent Account Number (PAN) to 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 to Aadhaar and save by paying double the penalty.
“In order to mitigate the inconvenience to taxpayers, as per Notification No. 17/2022 dated March 29, 2022, a window of opportunity has been provided to taxpayers till March 31, 2023 to make their Aadhaar known to the authority prescribed for Aadhaar-PAN Liaison without suffering any repercussions.As a result, taxpayers will have to pay a fee of Rs.500 up to three months from 1st April 2022 and a fee of Rs.1000 after that, while informing their Aadhaar .
The Income Tax Department can also impose a penalty under Section 272B up to Rs 10,000 for not having an active PAN.
LPG prices
The Petroleum Marketing Companies (OMC) have reduced the price of commercial 19kg LPG cylinder by around Rs 135 with immediate effect from June 1. In Delhi, the commercial 19 kg bottle now costs Rs 2,219.00 from Rs 2,355.50 per bottle. In Mumbai, the price of LPG has been reduced to Rs 2171.50 per cylinder from Rs 2307.
Buy capital property to become more expensive
Buying a property in New Delhi is expected to become more expensive as the recently unified Delhi municipality has decided to increase transfer tax by 1% on properties priced above Rs 25 lakh. The transfer tax will be 4% for men and 3% for women buyers. Currently, the transfer tax on the sale and purchase of property in Delhi is 2% for women and 3% for men.
Gold hallmark
As of June 1, 2022, the second phase of mandatory hallmarking came into effect, making the hallmarking of gold jewellery/artifacts fully mandatory in the 256 existing districts and 32 new districts covered by Assaying and Hallmarking Centers (AHCs) ). Only gold jewelry and antiques weighing 14, 18, 20, 22, 23, and 24 carats are sold in these 288 arrondissements, and they must be sold with hallmarking.
American Express credit card holders will incur an additional fee to convert a purchase to an EMI transaction
The American Express cardholder must now pay a processing fee of Rs 99 + applicable taxes on all converted EMI transactions at online or in-store point of sale. The processing fee will only be waived if the transaction is canceled or refunded by the merchant and the cardholder requests foreclosure of the EMI transaction(s) within 30 days from the date of the transaction(s). Cardholders must also pay a fee of 2% of the transaction amount as a processing fee to avail of the post-purchase EMI conversion feature, unless otherwise waived. An interest rate of 14% per annum will be charged for the conversion of large purchases into EMI.

About Pamela Boon

Check Also

Global Capital Partners’ Joe Malvasio reviews third quarter commercial mortgage-backed securities

Global Capital Partners Fund LLC is a direct lender offering hard money loans in a …