Will home loans get costlier? SBI hikes lending rates by 10 bps: Check current home loan interest rates

Home loans can potentially get costlier since SBI's three-year tenor MCLR is now 9.10%, from 9% earlier and overnight MCLR is now 8.20%, from 8.10 previously.

Published on: Aug 15, 2024, 17:54:36 IST

By HT News Desk

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State Bank of India (SBI), India’s largest state-run bank, has recently increased interest rates on loans by 10 basis points, effective from Thursday, August 15, 2024.

All types of loans, including home loans can potentially get costlier since the MCLR has now been hiked. (Pradeep Gaur/Mint)

SBI's Marginal Cost of Funds Based Lending Rate (MCLR) for a three-year tenor is now 9.10%, compared to 9% earlier. Overnight MCLR is now 8.20%, compared to 8.10 previously. The bank had raised its MCLR previously by up to 30 basis points in some tenors since June 2024.

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What is the impact of the increased interest rates on SBI home loans?

All types of loans, including home loans can potentially get costlier since the MCLR has now been hiked.

The current interest rates for SBI home loans are as follows:

SBI home loan rates (Source: SBI website)

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Why did banks hike their MCLR and how is it related to home loans?

The Reserve of India (RBI) had flagged concerns due to banks and NBFCs not following prudential norms when it comes to top-up home loans. This was combined with the fact that there was a high growth in personal loans, especially in home equity or top-up loans in the housing segment.

As a result, other PSU banks including Bank of Baroda, Canara Bank, and UCO Bank had hiked their MCLR. SBI has joined the bandwagon now.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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