SBI hikes lending rate, loans to get costlier

Posted By: Samyuktha
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SBI Home Loans
New Delhi, Aug 16: Home and auto loans are set to get costlier as the country's largest lender, State Bank of India (SBI), has hiked the benchmark lending rate by 50 basis points.

The state-run lender has hiked the rate to 12.25 per cent besides increasing fixed deposit rates by up to 150 basis points across various maturities.

“The bank has revised the benchmark prime lending rate upwards by 50 basis points from 11.75 per cent p.a. to 12.25 per cent per annum effective from August 17," SBI said a filing to the Bombay Stock Exchange (BSE).

However, for new borrowers the base rate, which became effective on Jul 1, 2010, stands at 7.5 per cent.

Accounting for the highest increase done by the bank among various maturity term deposits, SBI increased interest rate by 1.5 per cent to 4 per cent per annum for the term deposit with maturity between 15 to 45 days.

The new interest rate for fixed deposit between 181 days to less than 1 year will be 6 per cent against existing 5.25 per cent.

The 555 days fixed deposit rate will now attract interest rate of 7.25 per cent an increase of 1.25 per cent.

Starting from Aug 17, the term deposit rate between 3 years to 5 years will go up by 75 bps to 7.25 per cent. The bank has increased 5 years to 8 years maturity slab by 25 bps to 7.50 per cent.

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