The current home loan market scenario seems to be going averse for the old customers of banks. The recent months have seen banks raising their benchmark prime lending rates (BPLR) while at the same time keeping base rate constant.

Base rate is the rate at which all new loans are sanctioned to customers since July 1 2010.

"The banks want to use their base rates to remain competitive in the market and acquire new customers at the cost of the old ones," a senior banker, who did not wish to be identified, said. "In my opinion that is unfair."

Although the old customers have been given the option to choose between BPLR and base rate, RBI has not yet given permission for total switch from the former to the latter, thereby increasing the likelihood of BPLR not evanishing in totality.

In August, State Bank of India raised BPLR by 50 basis points but base rate saw a corresponding rise by only 10 basis points.

Similar case happened with ICICI Bank which raised BPLR by 125 bps in two installments since July while base rate saw only 25 bps rise in October.