State Bank of India (SBI) has upped its benchmark prime lending rate (BPLR) and Base Rate by 70 basis points each, even as it left its marginal cost of funds-based lending rate (MCLR) unchanged.
The BPLR and Base Rate, which are erstwhile lending rate benchmarks, have been revised to 13.45 per cent (currently:12.75 per cent) and 8.70 per cent (8 per cent), respectively. The new rates will come into effect from September 15, 2022.
Most of SBI’s loans are now benchmarked to either on MCLR or external benchmark-linked lending rate (EBLR).
Banks offered BPLR-linked loans till June 30, 2010. Thereafter, banks offered Base Rate-linked loans. They started offering MCLR-linked loans with effect April 1, 2016.
From October 1, 2019, banks started offering EBLR-linked floating rate loans to borrowers in the retail, and micro and small enterprises segment.