SBI has increased the rate of home loan from 6.70% to 6.95%. The new rates come into effect from 1 April. In such a situation, other banks can also follow this path.
Home Loan Rates: There is a bad news for people thinking of taking home loan from State Bank (SBI). The country’s largest bank State Bank of India (SBI) has increased its home loan rates. According to the bank’s website, SBI has increased its home loan rates to 6.95 percent. The new SBI rates have come into effect from 1 April.
As of 31 March, SBI was offering home loans to customers at 6.70 per cent interest rate. In this way, the new rate of home loan of the bank is 25 bps higher than the previous rate.
Apart from this, the bank is also taking processing fees on home loans. This is 0.40 percent of the loan amount. SBI’s processing fee is a minimum of Rs 10,000 and a maximum of Rs 30,000. The rate of GST will be levied separately on this.
Actually, SBI was charging 6.70 per cent interest rate on loans up to Rs 75 lakh under a limited period offer. Above this, SBI was charging 6.75 per cent interest rate on home loans i.e. 75 lakh to 5 crore rupees.
Other banks can also increase their home loan rates by increasing the SBI home loan rates.
Many other banks also have special rates on home loans till 31 March 2021. For example, ICICI Bank is now charging 6.70 per cent interest rate on home loans. Customers taking home loans up to Rs 75 lakh from ICICI Bank will get home loans at this discounted rate. Whereas the interest rate on home loans above this will be 6.75 percent. This discounted rate of ICICI Bank is till 31 March only. However, ICICI Bank has not yet announced to increase home loan rates, but the bank can revise its rates according to SBI.
HDFC Bank is also offering home loans at the rate of 6.70 percent. The bank is charging 0.5 per cent or Rs 3,000 (whichever is higher) of the loan amount as processing fee. HDFC Bank has also not announced any change in its rates so far.
Kotak Mahindra Bank is also offering home loans at a cheaper rate in the market at this time. The bank is offering home loans at the rate of 6.65 percent only. In this, from 0.25 percent to 0.50 percent of the loan amount is being charged as processing fee. Currently, Kotak Mahindra Bank has not announced any change in home loan rates.
