Public sector lender Indian Overseas Bank (IOB) on Tuesday announced 0.50% hike in benchmark lending rate to 14% with effect from August 16, following tight monetary measures taken by the Reserve Bank to tame inflation, which has crossed 12%.

However, the existing housing loans and education loans, which are linked to BPLR, are exempted from the present revision. Further, fresh housing loans up to Rs 30 lakhs and fresh education loans are also exempted from the present revision.

In a separate release, Indian Bank has also decided to increase its benchmark prime lending rates by 75 basis points from the existing 13.25% to 14% per annum with effect from August 11.

However, the home loan floating rates for sanctioned limits up to Rs 30 lakhs for both existing and fresh accounts are not being revised. Further, educational loans interest rates for both existing and fresh accounts are spared from latest hike.

Apart from this, the bank has also decided to increase the interest rates on domestic term deposits with effect from August 9.