It is another good idea to tackle the situation. For this, you have to do small research on other banks interest rates and the switching charges. Normally, when you are switching you have to pay closing charges in the current bank and processing fees in the new bank. kaikki edulliset vipit to calculate everything and if you find it profitable, then its better to move to the another bank.
Banks to Increase the Interest Rates
I have explained the repo rates and why RBI needs to increase the repo rates. What I have explained is the basic or most common reason why RBI raises the key rates which is resulted in increase in the personal loan interest rates. There could be several other reason to change the key rates by RBI. So, now you got some idea on the rates related to RBI and need for increase in key rates.
The only way to bring more money into the system is increasing the deposit rates. It will stimulate the people to invest their money to deposits like fixed deposit.
Now, banks got the money from public as the fixed deposit with more interest rates, when they are lending it outside, the interest rates should be higher to get the profit. This is the very basic understand why the interest rates are increased.
I hope this article would have given the basic understanding on how the interest rates hiked by the banks. It is important to understand if you are borrower from the banks, this knowledge will help you to anticipate any future hikes and try to repay the existing loans sooner. If you have any thoughts, please post it in the comments section.