State Bank of India (SBI), the country’s largest lender, raised its benchmark prime lending rate (BPLR) by 70 basis points or 0.7% to 13.45%.

The current BPLR rate is 12.75%, and the announcement will make BPLR-related loan repayments more expensive. It was revised last June.

“From September 15, 2022, the Baseline Prime Lending Rate (BPLR) has been revised to 13.45% per annum,” SBI posted on its website. The bank also raised its benchmark interest rate to 8.7%, effective Thursday, by a similar basis point.

The amount of EMI will increase for borrowers who borrow at the benchmark rate. These are the old benchmarks banks used to make loans. Most banks now offer loans based on the External Benchmark Lending Rate (EBLR) or Repo Linked Lending Rate (RLLR).

Banks revise BPLR and benchmark interest rates quarterly. Other banks may follow up with SBI’s lending rate adjustments in the coming days. The hike in the benchmark lending rate comes just weeks before the Reserve Bank of India (RBI) monetary policy meeting, which is expected to see another rate hike to curb inflation.

According to the schedule, the next three-day monetary policy meeting will be held from September 28 to September 30.