Base Rate Comparison of Banks in India
All public and private sector banks are using the new base rate regime. The base rate is the minimum rate that a bank will lend money to anyone. Think of it as a floor below which RBI will not allow banks to lend to you. The latest increase in the interest rates by RBI has forced major private banks like ICICI, Axis Bank, HDFC and also PSBs like SBI, PNB, CBI, BoB etc to increase their base rates.
Here is the list and comparison of the latest base rates for most public and private sector banks – (Effective Aug 2011)
Previously, banks used to price the loans they offered to you on a complicated system called benchmark prime lending rate (BPLR). Each bank has its own BPLR methodology which made it difficult for borrowers to compare rates across banks.
Now, with the base rate in place, it will be easier for all of us to compare across banks and to get a more transparent view on how the interest rate for the loan is being arrived at. Here is the base rates for major banks in india. (Last Updated: Aug 18, 2011)
|Bank||Latest Base Rate (%)|
|State Bank of India||10.00|
|Union Bank of India||10.75|
|Punjab National Bank||10.75|
|Bank of India||10.75|
|Central Bank of India||10.75|
|Bank of Baroda||10.75|
|Indian Overseas Bank||10.75|