The State Bank of India (SBI) is the largest public sector bank in the country and has a customer base of over 45 crores across India. Crores of people have taken out a home loan, personal loan, and other types of loans from SBI, as it offers a reasonable interest rate.
SBI has recently faced a setback, due to which a major revision in the interest rate has been made by the bank. Effective today i.e. December 15, the interest rate on loans from SBI has been increased by 10 basis points.
According to the latest revisions, the new interest rates will be payable to the customers at the rate of 0.10 percent. Apart from this, the bank has also decided to revise the prime lending rate for the customers. The revised prime lending rate is 12.30 percent, as per the SBI website.
Now, the base interest rate has also been increased by 10 points, and the new interest rate on loans for customers stands at 7.55 percent. Since the base rate has been increased by SBI, this will have a direct impact on the customers of the bank.
Now, the borrowers will be liable to pay a higher amount of interest on their loans. It must be noted that the right to decide the base rate does not lie with any bank, but with the Reserve Bank of India. No private or government bank can offer loans below the base rate.
Even though the base rate of interest percentage has been revised, SBI has said that it has not made any change in the marginal cost of lending rate for all tenors. The revisions in the base rate of interest and all other hikes are present on the official website of the State Bank of India.
Before this, the base rate of SBI was 7.45 percent, which was fixed in the month of September this year. The benchmark prime lending rate (BPLR) was also fixed at 12.20 percent in the same month. Now, the Reserve Bank of India has set the base rate at 7.30 – 8.30 percent. Subsequently, SBI has fixed the base rate at 7.55 percent.
