Now, borrowers of the Laxmi Vilas Bank, have to shell out additional .5 percent, since the basic lending rate has been increased by this bank. The revised lending rate is now, 11.5 percent of all the loans that have been sanctioned by the bank, which takes effect from the 26th of August, 2013. Of course, the bank also has increased the interest rate up to 2.75 percent, which is a happy news for the depositors. Now, the investors will get an additional 2.75 % , for the deposits from 15 to 29 days. Previously, the bank was offering only 3.25%, which has been upped to 6%. For the 30 days to 45 days, the new interest rate is 6.5%, instead of the old rate, 3.75%.
In recent times, the banks are only increasing the deposit interest rates and not the lending rates. Now, the Laxmi Vilas Bank has joined the select band, with the ICICI Bank, HDFC Bank and the Axis Bank. Since the value of the Indian Rupee is touching the record low continuously, the Reserve Bank is taking various steps to arrest the downfall of the INR.