New Delhi: State-owned Bank of India (BoI) has announced a hike in lending rate by 10 basis points, a move which will make loans, including retail, expensive. The lending rate increase comes ahead of the monetary policy announcement by the Reserve Bank of India on April 5.


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The new rate would be effective from April 1, BoI said in a regulatory filing on Saturday. (Also Read: 'Why Aren't You Going On Holiday?': Boss's Bizarre Question To Fired Employee Goes Viral)


The bank has increased the mark-up by 10 bps from the existing level of 2.75 percent to 2.85 percent, and with the present repo rate of 6.5 percent, the repo-based lending rate (RBLR) will be 9.35 percent, it said. (Also Read: Have You Seen This Interesting Tree At New Delhi Railway Station? Its Price Will Shock You)


Meanwhile, in a separate filing, another public sector lender Indian Bank has hiked the lending rate linked to base rate and Benchmark Prime Lending Rate by 5 basis points.


The new rates are effective from April 3 in the case of the Indian Bank.