State Bank of India (SBI) has increased its base rate by 10 basis points (BPS). Under the recent information, the move by SBI is set to make loans a little costlier for existing borrowers. According to the information provided on the SBI's website, the base rate has been increased by 10 bps. The new rates have come into effect from 15th December, 2021. Let me tell you that earlier in September, the bank reduced the base rate by 5 basis points to 7. 45 per cent. In fact, the State Bank of India has also decided to increase the soil lending rate from 10 per cent to 12 per cent. 30 per cent has been reduced. On the other hand, the base rate has been increased by 10 basis points.
This means that this new rate is 7. It will be 55 per cent. Let me tell you that SBI has also increased interest on fixed deposits above Rs 2 crore since 15th December, 2021, while there is no change in interest rates of FD below Rs. At present, the bank's increase in base rate will have a direct impact on SBI customers. The increase in base rate is said to make interest rates pre-expensive, forcing customers taking loans to pay higher interest. The bank's move will increase the rates of home loans, auto loans, business loans and personal loans. At the same time, customers will now have to pay more EMIs than ever before.
Let me tell you that the SBI has taken this decision in the midst of the strike. You must be aware that at present, the United Forum of Bank Unions (UFBU), the apex body of 9 organizations of bank Employees, has announced a two-day strike. In fact, the strike has been announced against the proposed privatisation of two public sector banks.