State-owned Union Bank of India today raised lending rate by 0.5 percentage points making existing loans costlier.

The bank has decided to revise Benchmark Prime Lending Rate (BPLR) by 50 basis points from 15% to 15.50%, Union Bank of India informed the BSE.

The revised rate will be effective from November 28, it said. The hike in PLR will make existing loan costlier.

The hike in interest rates comes a month after RBI raised its key policy rates by 0.25 percentage point to check high inflation.

RBI raised the short-term lending (repo) rate by 25 basis points to 8.5% and the short-term borrowing (reverse repo) rate by a same margin to 7.5% in a bid to check the rate of price rise.