PSU car loan lender Indian Overseas Bank (IOB) has declared a hike in its lending rate by 50 basis points in accordance with the industry drift.
The bank’s Benchmark Prime Lending Rate (BPLR) will be 12.5% with effect from August 23, IOB told the BSE.
The rise in interest would not affect home loan, it said. But Car Loans and corporate loans associated with BPLR would be costlier for the current borrowers.
The decision follows immediately after the State Bank of India and ICICI Bank increased its BPLR by 50 basis points.
Last month, the RBI, had hiked reverse repo rate by 50 basis points and repo rate by 25 basis points to lower inflation.
After this step, many of the PSU banks, including Punjab National Bank, Bank of Baroda, Bank of India, Oriental Bank of Commerce and Canara Bank, took steps by increasing their BPLRs by up to 50 basis points.