While the increase in repo rates will make loans more expensive, you also need to be cautious about the fees and charges for other banking services and transactions, which have been hiked in the recent past. Find out how these can add up to your monthly outgo.
Loans
The EMIs on big-ticket loans, such as those for home or car, will go up.
Outstanding loan: Rs 50 lakh
Remaining tenure: 179 months (14 years, 11 months)
Original interest rate: 10.5%
Original EMI: Rs 55,500
Revised interest rate: 10.75%
Revised emi: Rs 56,250
Car Loan
Outstanding loan: Rs 5.5 lakh
Remaining tenure: 77 months (6 years, 5 months)
Original interest rate: 10.75%
Original EMI: Rs 9,918
Revised interest rate: 11%
Revised EMI: Rs 9,989
Service charges
The random charges and fees imposed by banks may not seem too high, but cumulatively, they can leave a big hole in your pocket. Here's how.
Cheque return Rs 350-750
From a fixed monthly charge for a cheque return, some banks have begun to levy a graded fee based on the number of instruments. Also, unlike earlier, return of fund transfer will also be taken into account.
Phone banking
Rs 50
From 1 November, some banks will offer only first two calls free in a month, and subsequently, charge Rs 50 per call (not for calls to register complaints or card loss). Currently, all such calls are free.
SMS alert
Rs 15 per quarter
Most banks are now charging for SMS alerts; the service used to be free earlier. Some banks levy a higher charge of Rs 25 per quarter for current accounts.
Branch banking
Rs 100
With effect from 1 November, Rs 100 will be charged after the first four free cash transactions in a month. This is the charge if specified balance is maintained; in case of non-maintenance, all transactions will be charged at Rs 100. Earlier, Rs 50 was charged per cash transaction in case the specified balance was not maintained.
Credit cards
3.25-3.35%
Some credit card issuers have revised the interest rate on outstanding amount after the credit free period from 3.05-3.15% to 3.25%, with effect from 1 October.
Non-maintenance of minimum balance
Rs 250-500
Banks typically charge for nonmaintenance of the specified minimum balance in the account. Now, some banks are switching from the requirement of Average Quarterly Balance (AQB) to Monthly Average Balance (MAB).
Cash withdrawal at ATMs
Rs 20
Most banks levy a fee of up to Rs 20 beyond five transactions at ATMs of other banks.
Debit cards
Rs 150
Some banks have revised the annual fee from Rs 100 to Rs 150 in urban centres; others have introduced an issuance fee of Rs 100, which was not levied earlier.
Source : http://economictimes.indiatimes.com
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