It's Time to Pay More for Banking Services

Bangalore: While interest rates for loans are increasing, you might also be watchful about paying the charges for other banking services and transactions that have been hiked recently. Preeti Kulkarni of Economic Times helps you identify how increase in the rate of banking services will affect you financially.

Loan

Every monthly installment for home and car loans are expected to increase.

Home loan

The outstanding loan for home loan is Rs.50 lakh and both public and private banks  provide 179 months to clear the balance amount with an interest rate of 10.5 percent that comes up to Rs.55,500 monthly EMI. Now the revised interest rate is 10.75 percent and the revised EMI is Rs.56, 250.

Similarly, outstanding loan for car was Rs.5.5 lakh for which the borrower will get 77 months to clear all the balance. Previously the loan was sanctioned at the interest rate of 10.75 percent but the revised interest rate of 11 percent can make a huge hole in the consumer’s pocket.

Other Service Charges

Other causal charges that bank impose on you might not look too high, nut when consider to a long run, it might definitely affect you financially. For instance, cheque return will cost you between Rs. 350 to 750, Phone banking will cost you Rs.50, SMS alert for Rs.15 per quarter and Branch banking at Rs.100.

Also Read: What If You Fail To File Tax Returns Within The Deadline? Home, Car Loan Borrowers Can Now Take A Breathe