State Bank of India (SBI) has announced an increase in its loan-related base rate and benchmark prime lending rate (BPLR). This increase will be effective from March 15, 2023. SBI has increased its bet rate by 0.70. With this, the base rate of the bank has increased to 10.10%, which till now was 9.40%. Apart from this, the bank has also increased its Benchmark Prime Lending Rate (BPLR) to 14.85%, which till now was 14.15%. Due to this, EMI of BPLR and base rate related loans will become expensive. Actually, both of these are the old benchmarks of the bank, on the basis of which the bank used to give loans to people.
Now instead it is given on the basis of External Benchmark Based Lending Rate (EBLR) or Repo Rate Linked Rate (RRLR). However, these rates are still applicable on loans which have already been given on Base Rate and BPLR.
What is Benchmark Prime Lending Rate (BPLR)
what is base rate
According to the information given on the website of Kotak Mahindra Bank, “Base rate is the minimum interest rate at which Indian banks can give loans. They are not allowed to give any loan below this rate. The average cost of obtaining funds plays an important role in determining the base rate. As per RBI policies, banks have to review the base rate every quarter. In place of MCLR was introduced.
