State Bank, the country’s first public sector bank, has announced a hike in interest rates. The new rates will be applicable from Wednesday i.e. today. State Bank has increased the base rate by 10 basis points.
New Delhi: The customers of the country’s largest public sector bank State Bank of India have suffered a major setback. SBI has announced to increase the interest rate. The new rates have come into effect from Wednesday i.e. today. Now the new interest rates will be payable to the customers at the rate of 0.10 percent.
With this, the bank has also decided to increase the prime lending rate and it has been reduced from 10 percent to 12.30 percent. At the same time, the base rate has been increased by 10 basis points. That is, this new rate will be 7.55 percent.
Big blow to customers
The effect of increasing the base rate will be on interest rates. With the increase in the base rate, the interest rates will become more expensive than before, due to which the borrowers will have to pay more interest. Let us tell you that the right to decide the base rate is in the hands of the banks. No private or government bank can offer loan below the base rate. All private and government banks consider the base rate as standard. On this basis, interest on the loan etc. is decided.
No change in marginal cost
SBI has said that it has not made any change in the marginal cost of lending rate for all tenors. These rates will remain as before. Let us tell you that SBI has a major share in the home loan sector. SBI has a total control of 34 percent in the market. Significantly, SBI has disbursed loans up to Rs 5 lakh crore. At the same time, SBI is aiming to take this figure to 7 lakh crores by 2024.
Know what is the bet rate?
Base rate of a bank is the minimum rate below which no bank can give loan to any person or institution. Based on this, the interest of the bank loan is decided. However, there can be an exception to this. But its decision has to be taken by the higher officials of the bank. Base rate is the rate that the bank applies to its customers. Or it can be said that the rate at which commercial banks give loan to the customer is the base rate.
Rate was revised in the month of September
It is worth noting that earlier in the month of September, the base rate of State Bank was revised. The base rate was fixed at 7.45 per cent with effect from September 15. Now the new base rate has increased by 0.10 percent to 7.55 percent. At the same time, in the same month, State Bank had revised the benchmark prime lending rate or BPLR and fixed it at 12.20 percent. The base rate fixed by the Reserve Bank is currently 7.30-8.80 percent.