Planning to take a short-term personal loan to manage your expenses, or top-up your home loan.
You will now have to pay more to the bank.
Starting August 15, 2024, India's largest bank, the State Bank of India, has increased its lending rates for short term loans.
SBI has upped the rate on overnight loans from 8.1 per cent to 8.2 per cent.
Additionally, it has increased the rate for its three-year loan from 9 per cent to 9.1 per cent.
Now SBI isn’t the only one making this move. Other major banks like Bank of Baroda, Canara Bank, and UCO Bank have also hiked their rates.
But why are banks doing this? The answer potentially lies in RBI's concerns regarding non-adherence to norms by banks, especially regarding top-up home loans. A surge in personal loans is also seen as a trigger behind this move by banks.
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