Several banks have fixed their minimum lending rate at 8.5 per cent. But leading private sector banks including HDFC and Citi Bank have pegged their rates below 7.5 per cent. The SBI and the ICICI have fixed their base rate at 7.5 per cent.The lowest rate of seven per cent comes from small private sector banks the Dhanalakshmi bank and DBS bank. The base rate system will be applicable for all new loans and also existing loans that come up for renewal. Existing loans based on the benchmark PLR system may continue till maturity of the existing contract.