homepersonal finance News

Get ready to pay more for home loan, motor car insurance, flying from June 1

Get ready to pay more for home loan, motor car insurance, flying from June 1

Get ready to pay more for home loan, motor car insurance, flying from June 1
Profile image

By CNBCTV18.com May 31, 2022 2:35:05 PM IST (Published)

From higher home loan rates by the State Bank of India to increased motor third-party liability insurance premium, customers should be prepared to pay more for a number of products from the next month

Come June 1, a slew of financial measures will kick in that are likely to impact the common man. From higher home loan rates to increased motor third-party liability insurance premium, customers will have to pay more for a number of products from next month. Customers of Axis Bank and India Post Payments Bank will also be directly impacted due to the changes to be implemented from June. While some changes will come into effect from June 1, a few others will start later in the month.

Recommended Articles

View All

Here’s a look at the changes that will set in from June:
Higher SBI home loans --
 India’s largest public sector lender State Bank of India (SBI) has announced a hike in home loan external benchmark lending rate (EBLR) by 40 basis points to 7.05 percent. The bank will also revise the Repo-Linked Lending Rate (RLLR) to 6.65 percent plus Credit Risk Premium (CRP). The new rates will come into effect from June 1.
Axis Bank service charge hike - Private lender Axis Bank has raised its average monthly balance (AMB) requirement on savings accounts from Rs 15,000 to Rs 25,000 with effect from June 1. The bank has also revised its minimum service fee on non-maintenance of balance, which will now be zero, down from the existing Rs 75. In metro/urban regions, semi-urban areas and rural places, the maximum price will be Rs 600, Rs 300 and Rs 250, respectively, from June 1.
Third-party motor insurance premiums - Following the directive of the Ministry of Road Transport and Highways, the third-party motor insurance premium for various categories of vehicles has been hiked from June 1.
As per the new rates, cars with an engine capacity of less than 1000cc will have to pay third-party premium of Rs 2,094. Private four-wheelers with engine capacity between 1000 cc and 1500 cc will have to pay a third-party insurance premium of Rs 3,416 against Rs 3,221 in 2019-20. Vehicles with an engine capacity above 1500 cc will have to pay a premium of Rs 7,897 against Rs 7,890 earlier.
Two-wheelers with an engine capacity of less than 75cc will have to pay third-party cover of Rs 538, while those with engine capacity between 75cc and 150cc will pay Rs 714. For two-wheelers having an engine capacity between 150cc and 350cc, the cost of the premium will be Rs 1,366. Those with engine capacities exceeding 350cc, third party motor insurance premium will be Rs 2,804.
The rates were not revised after the financial year 2019-20 due to the impact of COVID-19 pandemic.
India Post Payments Bank charges -- India Post Payments Bank will levy service charges for its Aadhaar-Enabled Payment System (AePS) after the first three transactions each month. The first three transactions, which can include cash withdrawal, cash deposit, and mini statement, can be done free of charges. Thereafter, the customer will be charged Rs 20 plus GST per transaction for cash withdrawals and cash deposits and Rs 5 plus GST for each mini statement transaction. The new service charges will come into effect from June 15, 2022.
ATF price hike – Prices of aviation turbine fuel (ATF) are revised on the first and sixteenth of every month. It was hiked by 5.29 percent, or Rs 6,188.25 per kilolitre, on May 16, taking the total to an all-time high of Rs 1,23,039.71 per kilolitre. This was the tenth straight increase of the year in ATF prices. The increase will make flying expensive.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng