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Can you afford your loan?!
Know the quantity of loan you can afford. The banks may sanction loan based on your income but you should look at your monthly expenditure and see if you can afford the maximum that banks offer. As a thumb rule, remember not to let your credit exceed 40% of your income!
Car loan lender SBI increases deposit rates
The biggest car loan lender of the country, State Bank of India has hiked deposit rates on various maturities. The hike has been up to150 basis points.
SBI has declared the single biggest increase in 45 day deposits by 150 bps since 1997. These deposits would now earn 4% interest as against 2.5% previously.
Deposits in the tenor ranging from 15-45days to 10 years would experience an interest rate hike between 25 bps to 150 bps.
The interest rate on 1 year fixed deposits is 6.75%, for 3 years 7.25% and for 5 years at 7.50%.
The bank has also introduced floating rate term deposits connected to its base rate. Deposits of 1 year, 3 years and 5 years will be tied to the base rate of 7.5% for the bank.
1 year floating rate deposits would earn 7% interest, 50 bps below PLR. 3 year deposit would fetch 25 bps below base rate of 7.25% while for 5 year deposits the interest is equal to the base rate of 7.5%.
A top SBI official said, “The increase is sharp on short-term deposit rates, as we want to be active in the short-term lending and investment market“.
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