According to SBI’s website, the BPLR will increase by 70 basis points or 0.7 per cent and will increase to 14.85 per cent. With this announcement, repaying the loan related to BPLR will become expensive.
Image Credit source: Representational Image
country’s largest lender state Bank of India (SBI) Base rate and benchmark prime lending rate from Wednesday (BPLR) is going to increase. The bank revises both BPLR and Base Rate on a quarterly basis. According to the bank’s website, the BPLR will increase by 70 basis points or 0.7 percent and will increase to 14.85 percent.
With this announcement, repaying the loan related to BPLR will become expensive. The current BPLR rate is 14.15 percent. It was last revised in December 2022. The bank will also increase the base rate by 70 basis points to 10.10 percent from Wednesday. The current base rate is 9.40 per cent. It was last revised in December 2022.
EMI will increase
The EMI amount of the borrowers taking the loan at the base rate will increase. These are the old benchmarks on which banks used to distribute loans. Now most of the banks provide loans at External Benchmark Based Lending Rate (EBLR) or Repo-Linked Lending Rate (RLLR). The hike in the benchmark lending rate comes weeks ahead of the Reserve Bank of India’s (RBI) monetary policy meeting on April 6, in which it is expected to hike rates again to curb inflation, even as global markets took a nosedive after the banking crisis. The rate hike from the US next week has lowered the stakes.
read this also: Interest rates may go up to 7-year high, indications from inflation data
RBI may increase repo rate
Economists said on Tuesday that the Monetary Policy Committee of RBI may again increase the repo rates by 25-basis point (bps) in April. Gaura Sen Gupta, Economist, IDFC First Bank told Live Mint that we expect the RBI to hike the policy rate by 25 bps in April. Core inflation in January and February will add to RBI’s worries. Retail inflation figures were revealed on Monday. Which were marginally lower at 6.44 percent as against 6.52 percent in January.