SBI raises Benchmark Prime Lending Rate to 13.45%

15 Sep 2022 , 08:00 AM

State Bank of India (SBI), the largest lender in the nation, increased the Benchmark Prime Lending Rate (BPLR) on Wednesday by 70 basis points (or 0.7%), bringing it to 13.45%. The announcement would increase the cost of BPLR-linked loan repayment. 12.75% is the current BPLR rate. June was the most recent revision.

The SBI announced on its website that the benchmark prime lending rate (BPLR) had been changed to 13.45% per year with effect from September 15, 2022.

The base rate was likewise increased by the same amount by the bank, to 8.7%, starting Thursday.

For borrowers who have taken out loans at the base rate, the EMI amount will increase.

These are the previous standards that banks used to base loan approvals. Nowadays, the vast majority of banks base their lending terms on External Benchmark Based Lending Rates or Repo-Linked Lending Rates (RLLR).

On a quarterly basis, the bank adjusts both the base rate and the BPLR. Other banks are anticipated to follow the SBI’s lending rate revision in the days to come.

Weeks before the Reserve Bank of India’s (RBI) monetary policy meeting, which is anticipated to raise rates once again to control inflation, the benchmark lending rates increased.

The next three-day monetary policy meeting will take place from September 28 to September 30 according to the program.

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