Are you planning to take a home loan or a personal loan ?? When it comes to selecting your preferred bank, the first name that comes into your mind is SBI (State Bank Of India) which is India‘s largest bank. We also have in our mind that it may take “some” time to get your loan approved, but one thing is for sure, You will get it at very low interest rate.
But there is a bad news coming for SBI’s loyal customer base, which is bound to affect all its present as well as future borrowers. SBI (State Bank Of India) has just hiked its Base Rate and Benchmark Prime Lending Rate(BPLR) by 25 basis points each. This change will be effective from 25th April 2011. However, the Interest Rate on Term Deposits has been left unchanged.
For people who know nothing about these financial terms(that include us as well :-)) BPLR(Benchmark Prime Lending Rate) is the Interest Rate, at which Commercial Banks charge their most credit-worthy customers. Reserve Bank of India (RBI) committee, which reviews the Benchmark Prime Lending Rate (BPLR), has recommended the BPLR nomenclature to be scrapped and in stead a new benchmark rate — known as Base Rate — be put in place.
But, there are enough reasons not to worry. Even though the Base Rate for SBI’s loans is increased, it’s interest rate is still the lowest in Banking Industry. The Base Rates of most other public sector banks are in the range of 9-9.5 per cent whereas for State Bank Of India (SBI) the revised Base Rate is 8.5 per cent. No wonder, SBI remains the preferred first-choice lender for most of us, provided we get one !! They have set pretty stringent norms in place for granting home loans. I think, they should be more lenient in their home-loan-grant and should also cut-down on their processing time.