SBI raises floating home loan rate by 0.5 per cent
Country's largest lender State Bank of India on Friday increased floating home loan rate by 0.5 per cent across all tenors with effect from June 27.
Home loan up to Rs 30 lakh for 20 and 25 year period, the interest rate has been increased by 0.5 per cent to 11 per cent against 10.5 per cent, SBI said in a release.
Equated Monthly Instalment (EMI) for 25 years would go up from Rs 945 to Rs 980 per one lakh while for 20 year EMI would go by Rs 35 to Rs 1035.
At the same time, housing loan with maturity between 10 and 15 years has gone up to 10.75 per cent. EMIs under these maturities would go up as much as Rs 35.
For five years, the new rate of interest is 10.5 per cent, against 10 per cent earlier. EMI in the category would rise by Rs 25 to Rs 2150 per one lakh.
Similarly, housing loan above 30 lakh category is increased by 0.5 per cent across all tenors. The maximum rate in the segment went up to 11.25 per cent.
However, it has left fixed interest rate on home loan unchanged at 12.75 per cent.
Floating interest rate is linked to State Bank Advance Rate(SBAR) 12.75 per cent per annum, it said. On June 27, the bank increased its PLR by 0.5 per cent.
The decision was taken following Reserve Bank's June 24 announcement of a 0.5 per cent hike in its short term lending rate to banks and cash reserve requirement.
Private sector player like HDFC, ICICI Bank have already increased home loans rate by 0.75 per cent.