Top five money-related changes in June

From loan EMIs, car insurance to deposits: Top five money-related changes in June

Now that the month of June has begun, there are many money-related policy changes announced by banks, insurance companies and other agencies last month have come into effect and some will be in place by the end of this month. All these changes will have an impact on your budget planning.

Whether you’re taking a home loan or planning to buy a car or simply wanting to put your hard-earned money into deposits, key changes have taken place in June. Some lenders have made key revisions in their home loan interest rates, saving deposit rates, and service charges starting June.

Besides, car and bike owners will have to shell out higher third-party insurance premium now. Furthermore, the penalty amount is doubled to Rs 1,000, if PAN-Aadhaar linking is not done by June 30. In a relief to LPG consumers, buying commercial cylinders has gotten cheaper this month.

Here are the key changes in June:

1. Loan EMIs to go up

Various lenders including SBI and HDFC have hiked their home loan interest rates. State Bank of India (SBI) increased its home loan interest rates, effective June 1, 2022. The bank has raised the external benchmark-based lending rate (EBLR) by 40 basis points to 7.05% plus CRP and the repo rate linked lending rate (RLLR) has risen to 6.65% plus CRP.

Under the regular home loans, SBI interest rates range lowest from 7.05% to a maximum of 7.35%. There are 5 basis points concession available to women borrowers subject to minimum EBR ie 7.05%.

HDFC Retail Prime Lending Rate (RPLR), on which its Adjustable Rate Home Loans (ARHL) are benchmarked, has gone up by 5 basis points, with effect from June 1. With this 5 bps increase, the total hike in interest rate will be 40 bps for HDFC home loan borrowers. One basis point is one-hundredth of one percentage point.

Two other lenders ICICI Bank and Punjab National Bank (PNB) have also announced a hike in their marginal cost-based lending rates (MCLR). PNB, a state-owned bank, has increased its marginal cost of funds-based lending rate by 15 basis points. The increased rates go into effect on June 1, according to the PNB website.

Private sector lender ICICI Bank also revised the marginal cost of funds-based lending rate with effect from June 1, 2022, according to its website.

Bank of India also raised marginal cost of funds-based lending rate on some tenor with effect from June 1, 2022.

2. Premium for flagship insurance schemes PMJJBYPMSBY hiked

The Center has raised the premium for its flagship insurance schemes – Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) in order to make them economically viable. The premium rates revision has been done for the first time in seven years for both these schemes.

The premium rate of PMJJBY has been revised upward to Rs 1.25 per day, translating into an increase from Rs 330 to Rs 436 annually. The annual premium for PMSBY has been hiked from Rs 12 to Rs 20, an official statement said. The new premium rates are effective from June 1, 2022.

3. Brace to pay double penalty, if PAN-Aadhar linking done after June 30

Taxpayers have time till June 30 to link their PAN and Aadhaar with a late fee of Rs 500, according to a circular issued by the Central Board of Direct Taxes (CBDT). However, if this PAN-Aadhaar linking is done on or after July 1, the penalty amount will be Rs 1,000.

With a penalty fee, the Center extended the deadline to link PAN card with Aadhar number till March 31, 2023. The earlier deadline was March 31, 2022.

4. Third-party motor insurance premium goes up

As per the revised premium rates, private cars with engine capacities of up to 1,000 cc will attract an increased rate of Rs. 2,094. On the other hand, while cars with engine capacities ranging from 1,000 cc to 1,500 cc need to pay a premium of Rs. 3,416, those with more than 1,500 cc engine capacity will have premium rates of Rs. 7,897.

For two wheelers, if the engine capacity is between 150 cc up & 350 cc, the premium rate will be Rs. 1,366. Above 350 cc, the premium amount will be Rs. 2,804. One can also select three-year insurance plans that come with separate premium rates.

5. LPG price cut

Oil marketing companies (OMC) have cut the price of 19 kg commercial LPG cylinder by around Rs135 with immediate effect from June 1. In Delhi, the 19 kg commercial cylinder now costs Rs 2,219 against the previous level of Rs 2,355.50 per cylinder. In Mumbai, the LPG price is lowered to Rs 2,171.50 per cylinder from Rs 2,307 whereas, in Kolkata, a consumer will have to shell out Rs 2,322 per cylinder instead of Rs 2,455. At the same time, instead of Rs 2,508, a customer will have to spend Rs 2,373 in Chennai.

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