Another troubling news has come for State Bank of India (SBI) customers. The bank has once again made the home loan costlier. The bank has increased its benchmark based interest rates i.e. Benchmark Prime Lending Rate (BPLR) from today i.e. March 15. The bank has increased the BPLR by 70 basis points (bps). After which this interest rate is now 14.85 percent. Apart from this, the bank has also increased the base rate by 70 bps to 10.10 percent from the existing 9.40 percent.
Earlier, SBI had revised its benchmark prime lending rate and base rate on December 15, 2022. The increase in base rate and BPLR has a direct impact on old customers who have given loans before 2016. Since the bank has not made any change in the MCLR rates, this interest rate hike will not affect new home loan customers. MCLR is the rate at which the bank lends to the customers.
Which customers will have to pay more EMI
The Reserve Bank had implemented the base rate system in 2010. Base rate is the minimum interest rate at which banks give loans. In April 2016, RBI introduced Marginal Cost of Funds Based (MCLR) instead of Base Rate. At the same time, new loans are given on the basis of External Benchmark Based Lending Rate (EBLR) or Repo Rate Linked Rate (RLLR). An increase in Base Rate and BPLR will increase the installment for those whose loans are linked to these benchmarks.