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Domestic Bank Lending Rates with effect from 1st July 2010
Click here for International Lending Rates
Banks in India have switched to Base Rate system from Benchmark Prime Lending Rate (BPLR) system from July 01, 2010. Base Rate shall include all those elements of the lending rates that are common across all categories of borrowers. Banks may choose any benchmark to arrive at the Base Rate for a specific tenor that may be disclosed transparently.
Banks may determine their actual lending rates on loans and advances with reference to the Base Rate and by including such other customer specific charges as considered appropriate. ... Read Full Guidelines
Introduction of the base rate system in India’s banking system will enhance competition in the short-term lending space. Issuance volumes in the debt capital markets are also likely to increase as the highly rated corporates begin to shift towards these markets. However, competitive pressures are unlikely to impact the overall profitability of the banking system materially, says Crisil. The base rate system is also expected to enable banks to respond more efficiently to monetary policy measures.... Read More
LATEST LENDING RATES (BASE RATES)
In terms of RBI guidelines, Banks in India have switched to Base Rate system from Benchmark Prime Lending Rate (BPLR) system from July 01, 2010. Following is the updated list-
Banks Base Rate (p.a%)
PUBLIC SECTOR BANKS
State Bank of India 7.50%
Federal Bank 7.75%
State Bank of Mysore 7.75%
Corporation Bank 7.75%
Bank of India 8.00%
Punjab National Bank 8.00%
Bank of Baroda 8.00%
Union Bank 8.00%
Central Bank of India 8.00%
Indian Bank 8.00%
Uco Bank 8.00%
IDBI Bank 8.00%
Indian Bank 8.00%
Canara Bank 8.00%
Vijaya Bank 8.25%
Indian Overseas Bank 8.25%
PRIVATE SECTOR BANKS
HDFC Bank 7.25%
ICICI Bank 7.50%
DCB 7.75%
Dhanlaxmi Bank 7.00%
Bank of Rajasthan 8.00%
Karur Vysya Bank 8.50%
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Several public sector lenders,led by the India’s biggest lender State Bank of India, started lowering their prime lending rates, the benchmark interest rate, to which all loans are linked from November 2008. This was following the lReserve Bank of India's slashing reserve ratios and cutting short-term rates and the government’s assurance of favourable policy measures.
To boost economic activity, since October, RBI has lowered the repo rate, or the rate at which it lends, by 425 basis points. To discourage banks from parking surplus cash, the central bank has also lowered the reverse repo rate by 175 basis points. The cash reserve ratio has also been reduced by 400 basis points to increase liquidity in the system... Read More
Number of public sector banks are going for third round of interest cuts from 1st May 2009. State Bank of India has already frozen new car loans interest rates at 10% for one year, home loan rates at 8%, Credit to farmers at 8 per cent for a year to stimulate the demand... Read More
A borrower first take into consideration the price and than only look at the interest rates. The demand for loans will pickup only after builders & manufactures pass benefits of various financial stimulus measures announced by Indian Government and Reserve Bank of India by reducing the rates.
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