The State Bank of India (SBI), the major lender in the nation, publicized an increase in its loan rates.

The base rates, which rolled up into effect by July 1, 2010, by 0.1 % to 8.6 % and the benchmark prime lending rate (BPLR) by 0.25 % to 12.5 % on Wednesday. The fresh new rates shall be implemented from Thursday.

The BPLR increased by SBI is probably to influence the equated monthly installments (EMIs) of the current home and auto loan borrowers by Rs 16 per lakh for almost 20year loan.

The effect on EMIs shall move down to Rs 15, Rs 14 and Rs 13 per Rs 1 lakh of 15 years, 10 years and 5 year loans, correspondingly. Nonetheless the effect of its base rate hike shall be insignificant.

It is also expected that the SBI shall be increasing its exclusive home loan rates by 0.1 per cent placed on the base rate, when the period of the current schemes expires in December and for fresh loans from Thursday.