India November 6: The state bank of India has increased its interest rate, or minimum lending rate, by 0.20 % to 10 %, a move other banks also are likely to follow. the rate hike would be effective from November 6. interest rate is the minimum rate below that banks are not permitted to lend.
The country’s largest bank has also announced that its benchmark prime loaning rate would also go up by by 0.20 % to 14.75 %.
The upward revision in the interest rate will push up the equated monthly installments (EMIs) of home loan borrowers, further squeezing their income at a time when households are struggling with high inflation.
It has become the second large bank to raise its interest rates in response to the lending rate hike by the Reserve Bank of India on Oct 29.
HDFC Bank had earlier increased its minimum lending rate, or the base rate, by 0.20 % to 10 %, effective 2 November.
