Bendigo Bank Ltd has raised its variable home loan interest rate by 10 basis points, citing increased funding costs.

The new rate on Bendigo’s variable home and business loans will take effect on May 6.

Bendigo Bank spokesman Owen Davies said the increase was regrettable, but the bank had to sought to soften the impact of funding increases on customers.

“We continue to absorb some of our increased funding costs,” Mr Davies said.

AAP