Private sector lender, Kotak Mahindra Bank has raised both base rate as well as benchmark prime lending rate (BPLR) by 25 basis points.

The base rate of the bank now stands at 7.75% as compared to 7.50% earlier while the BPLR stands at 16.25%.

All loans will thus get costlier by atleast 0.25%. Existing borrowers of the bank will also experience the heat.

As per RBI guidelines, all banks are mandated to review their base rates every quarter.

Banks can also not lend below base rate.