State Bank of India (SBI) on Tuesday revised its base rate to 7.45% per annum with effect from September 15. The country’s largest lender also decided to revise benchmark prime lending rate (BPLR) to 12.20% from the same period.
Base rate is the interest rate set by Reserve Bank of India (RBI) for lending to other banks. And, BPLR is the rate at which banks charge their most credit worthy customers.
The current base rate set by the Reserve Bank is 7.30-8.80%.
SBI, however, kept marginal cost of funds based lending rate or MCLR unchanged for all tenures. MCLR is the minimum lending rate below which a bank is not allowed to lend.
Previously in May, SBI had reduced its home loan interest rates to 6.7% onwards.
“Home loan interest rates will start from 6.7% for loans up to Rs 30 lakh and 6.95% for loans above Rs 30 lakh and up to 75 lakh. The big-ticket loans above Rs 75 lakh would get home loans at 7.05%,” the lender had stated.
SBI also announced a special concession for women borrowers. “Women will get a special 5 bps (basis points) concession,” it mentioned, adding that other “customers can also apply for a loan via its YONO App to earn an additional interest concession of 5 bps.”