Home loans get costlier, SBI hikes lending rates to 9.8%
The banks also hiked its benchmark prime lending rate (BPLR) by a 10 basis point as well and the new BPLR now stands at 14.55 percent. The new rates will be effective from today.
Just a day before the Reserve Bank of India Governor Raghuram Rajan delivers his first mid quarter monetary policy review, State Bank of India raised its home loan rates by 10 basis points, that is from 9.7 percent to 9.8 percent.
Base rate is the rate below which the bank is not permitted to lend. The banks also hiked its benchmark prime lending rate (BPLR) by a 10 basis point as well and the new BPLR now stands at 14.55 percent. The new rates will be effective from today.
If fact, the bank also hiked interest rate for term deposits below Rs 1 crore by 25-100 basis points across different tenures. Take for instance, 7-179 days Fixed Deposit will now give you a rate of 7.50 percent, previously the rate was 6.50 percent.
Like wise, FD with tenure of 211 days to less than 1 year, you now get 7.50 percent as rate of interest, as compared to 6.50 percent before. For FD in tenure of 1 year up to 10 years, the new rate stand at 9 percent.
This moves comes one day before the mid quarter monetary policy review, lets see of other banks follow the largest PSU bank or wait for some policy action from Mint street before deciding on the rate offerings. See SBI's announcement here.
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