Bank Lending Hits 2-Year High: Your EMI Next?

Big companies are borrowing more from banks instead of issuing bonds because bond yields are too high. This surge in corporate lending could crowd out retail borrowers and affect the home and personal loan rates you pay.

Here's what happened: Bank lending to corporates has reached its highest level in two years as rising bond yields make debt markets expensive for companies.. When bond market borrowing costs rise, large firms shift to bank loans — pushing up overall credit demand across the system.. The RBI is expected to hold its policy repo rate steady, meaning lending rates may stay elevated for retail borrowers in the near term..

What you should do: Lock in a fixed-rate home or personal loan now if you have an upcoming major purchase — floating rates could inch up if credit demand stays high.. Check your existing floating-rate loan's benchmark (EBLR or MCLR) on your bank's website to understand when your EMI could be repriced.. Compare loan offers across at least 3 lenders on GoCredit before applying — a 0.25% rate difference on a ₹30L loan saves you over ₹50,000 across tenure..

When corporate credit demand surges, banks get choosier about retail lending. A CIBIL score above 750 gives you negotiating power to demand lower rates — check yours before applying.