After HDFC Bank, SBI too raises lending rate by 0.2%

With the Diwali season over, home or car loans are set to get costlier for consumers, as the State Bank of India – the country's leading lender – has increased its base or minimum lending rate by 0.20 per cent from 9.8 to 10 per cent effective from today.

The country's largest bank has also announced that its benchmark prime lending rate would go up by 0.20 per cent to 14.75 per cent.

The upward revision in the base rate will push up equated monthly installments (EMIs) of borrowers, further squeezing their disposable income at a time when households are struggling with high inflation.

SBI has become the second major bank to raise its interest rates in response to the 25 basis points hike in the repo rate by the Reserve Bank of India on 29 October.

HDFC Bank has made a similar increase in its base rate of 0.20 per cent to 10 per cent from 2 November.