SBI hiked its minimum rate of lending or the Base Rate by 40 basis points to 8 %, in line with peers and also increased its deposit rates by up to one per cent.
“State Bank of India has revised the Base Rate upwards by 40 bps from 7.60 per cent per annum to 8 % per annum effective from 3rd January 2011,” the bank said in a release issued here, adding the deposit rates have also been increased by up to 1 %.
However, the fate of the teaser sbi home loan scheme an innovation by SBI in days of high liquidity to lend at low rates for retail customers–was not immediately known.
A majority of banks who had followed SBI and introduced teaser rates have withdrawn lending under the scheme with the liquidity scenario getting tighter.
With the move to hike the base rate, both retail- including home and sbi car loan and corporate loans will be dearer to new borrowers.
You might find these relevant:
- Last month of year shown increase in number of car sales
- Understand points when open a fixed deposit
- HDFC Bank propose 9% interest on Non-Resident (External) deposits
- Reserve Bank alleviate rules for repayment of fixed deposits
- Attention for SBI customers Services Affected on Nov 8th & 9th
- PNB starts restructuring loans to state electricity boards
- Dena Bank targets 1.5 lakh cr mark by 2013
- Concerned wait on for high interest on savings
- How to select company Fixed Deposits | Investment Choice
- Savings account interest rate deregulation will not advantage customers much
Tags: loans, SBI, sbi car loan, SBI HOME LOAN, State bank Of India