Big shock for SBI customers! Bank Announces Loan Interest Rate Revision | Personal finance news
New Delhi: The State Bank of India (SBI) has announced a revision of base rates and lending rates. The largest public sector bank hiked base rates 0.10% while the prime rate was raised 0.10%.
The latest rate revisions are all expected to impact SBI clients who had taken out a floating interest rate loan from the bank. The new tariffs came into effect from Wednesday, that is to say today (December 15).
With the latest revision, the new base rate after an increase of 0.10 percent is now 7.55 percent. In contrast, the prime interest rate now stands at 12.30% today after 0.10%, according to a report from ZeeBiz.
The increase in the base rate will have a direct impact on SBI 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 lower than the base rate decided by the country’s RBI.
In addition, the SBI clarified that the bank had not changed the marginal cost of borrowing rate for all borrowers, despite an increase in the base rate and the prime rate. Also Read: Cabinet Sign at LIP for Semiconductors Will Strengthen Aatmanirbhar Bharat Program: PM Modi
SBI also notified the changes in bank rates on its official website. Borrowers can check out the portal to better understand how the latest increase in base and prime rates will impact their pockets. Also read: IPO MedPlus subscribed 52.59 times on the last day of the offer: Check the last subscription status