From car insurance to interest on Sbi home loans: what becomes more expensive from June

June is almost here, as is the case every month, some changes or new rules will come into effect in June as well. If you are a customer of State Bank of India (SBI), Axis Bank and India Post Payments Bank, there are finance-related changes that you will be launching from June. we should know. Apart from bank customers, the motor third party liability insurance premium for different categories of vehicles will increase, which will have a direct impact on the monthly budget of vehicle owners.

Here is an overview of the changes that will come into effect from June.

Higher SBI Home Loan Interest Rates

The State Bank of India (SBI) raised its external benchmark lending rate for home loans (EBLR) by 40 basis points to 7.05%, to 7.05%, at the lending rate of external reference (EBLR). According to the SBI website, the interest rate hike will take effect on June 1, 2022.

Increase in Axis Bank service fees

Axis Bank has increased service fees for salary and savings account holders. The bank has revised the Average Monthly Balance (AMB) requirement for 25,000 from 15,000; on the other hand, the minimum service commission on non-maintenance of balance will be nil.

Car insurance premiums for two-wheelers

Motor third party liability insurance premium for different categories of vehicles will increase, as announced by the Union Ministry of Road Transport and Highways

For two-wheelers with a cylinder capacity of less than 75cc, the cost of the third-party guarantee will be 538. Two-wheelers with a cylinder capacity greater than 75cc but not exceeding 150cc, the cost of the premium will be 714. For two-wheelers with a cylinder capacity greater than 150cc but not exceeding 350cc, the cost of the premium will be 1366. Two-wheelers with a cylinder capacity greater than 350cc, the cost of the premium will be 2,804.

Car insurance premiums for four-wheelers

Third-party rates for private 4-wheelers have also increased. From 1 June, the third party bonus for cars with an engine capacity of less than 1000cc will be 2,094. For a car whose engine capacity exceeds 1,000 cc but does not exceed 1,500 cc, the third-party bonus will be 3,416. For cars with a cylinder capacity greater than 1500 cm3, the third-party bonus will be 7,897. These rates were last revised for fiscal year 2019-20 and have remained unchanged during the COVID-19 pandemic.

India Post Payments Bank Charges for Aadhaar Enabled Payments

India Post Payments Bank (IPPB) has introduced the Aadhaar Enabled Payment System (AePS) service fee. The AePS issuer transaction fee will be effective from June 15, 2022. The first three AePS issuer transactions each month, such as cash withdrawal, cash deposit, and mini statement, will be free. Whereas, beyond the free transaction limit, cash withdrawals and deposits from the AePS issuer will be charged at 20 plus GST per transaction, and mini-statement transactions will be charged at 5 plus GST per transaction.

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