SBI lifts base rate a tad, to affect pre-2019 loans

December 18, 2021 12:00 am | Updated 06:35 am IST

Benchmark lending rate set at 7.55%

RAMANATHAPURAM: TAMIL NADU: 16 December 2021: A SBI branch in Ramanathapuram remained closed in view of two-days Bank employees strike the Centre’s move to privatise Public sector banks. Photo: L. Balachandar / The Hindu

RAMANATHAPURAM: TAMIL NADU: 16 December 2021: A SBI branch in Ramanathapuram remained closed in view of two-days Bank employees strike the Centre’s move to privatise Public sector banks. Photo: L. Balachandar / The Hindu

State Bank of India (SBI) has increased the benchmark lending rate or base rate by 10 basis points, to 7.55%, as per the information posted on SBI’s website.

The new rate is effective from December 15, it said.

The decision will not affect loans taken since January 2019 but will affect those who borrowed before that.

SBI had migrated to External Benchmark Lending Rate (EBLR) linked to repo rate since January 2019. There is no change in EBLR as this rate changes with a change in the benchmark interest rate of the Reserve Bank of India (RBI).

In the December monetary policy, RBI kept the repo rate unchanged at 4%.

The bank also revised the benchmark prime lending rate to 12.3%. For domestic term deposits, SBI raised the rate by 10 basis points for deposits over Rs. 2 crore.

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