The country’s largest lender State Bank of India (SBI) has increased its benchmark prime lending rate (BPLR) by 70 basis points or 0.7 percent to 13.45 percent. After this announcement, all types of bank loans linked to BPLR will become expensive.
At present, the rate of BPLR is 12.75 percent. This rate was last revised in June. At that time also it was increased after the increase in the repo rate by the Reserve Bank. The revised BPLR of the bank will be 13.45 percent (annual) with effect from September 15, 2022. SBI has given this information on its website.
Base rate also increased by 70 basis points The bank had increased its base rate by the same amount on Tuesday. After this, the EMI of the customers taking loan on the base rate has also increased. However, this is the old bench march on which banks give loans. Now most banks give loans on the basis of External Benchmark Based Lending Rate (EBLR) or Repo Linked Lending Rate (RLLR).
The Reserve Bank of India (RBI) had recently increased the repo rate several times, after which public and private sector banks are increasing their lending rates. With the increase in the repo rate, the repayment of the bank’s loan is getting expensive.
RBI meeting from September 28 to September 30
The next three-day monetary policy meeting of the RBI is to be held from September 28 to September 30. It is estimated that the Reserve Bank may hike the rate again to control inflation. SBI has increased its benchmark lending rates just a few weeks before the monetary policy meeting of the Reserve Bank of India. The bank revises both BPLR and Base Rate on a quarterly basis.
