Big shock to SBI customers! Bank announces revision of loan interest rates | Personal finance news
New Delhi: The State Bank of India (SBI) has announced a review of base rates and lending rates. The largest public sector bank raised base rates by 0.10% while the prime rate was raised by 0.10%.
The latest rate revisions are all expected to have an impact on SBI customers who had taken out a variable rate loan with the bank. The new tariffs entered into force from Wednesday, that is to say today (December 15).
With the latest revision, the new base rate after a 0.10% increase is now 7.55%. On the other hand, the prime rate now stands at 12.30% today after 0.10%, according to a report by ZeeBiz.
The increase in the base rate will have a direct impact on SBI’s clients, as borrowers will now have to pay a higher amount of interest charged by the public bank.
The minimum base rate on loans is set by the Reserve Bank of India. Banks operating in India are not allowed to offer loans at interest rates below the base rate decided by the RBI in the country.
Additionally, SBI clarified that the bank made no changes to the marginal cost of lending rate for all borrowers, despite an increase in the base rate and prime rate. Also Read: Cabinet Nod to Semiconductor PLI Will Strengthen Aatmanirbhar Bharat Programme: PM Modi
SBI also notified the bank rate changes on its official website. Borrowers can check the portal to better understand how the latest increase in base and prime rates will impact their pockets. Also Read: MedPlus IPO Subscribed 52.59 Times on Last Day of Offer: Check Latest Subscription Status