State Bank of India’s (SBI) home loan has hiked the minimum home loan interest rate. SBI home loan interest rates now start from 6.95 per cent. The change in the interest rate came into effect from April 1.
SBI, the country’s largest lender, had in March announced a special offer on home loan. The bank was offering home loans at interest rate starting from 6.70 per cent. The offer was valid till March 31.
The bank has now increased the interest rate for home loans by 25 basis points. The new rate (minimum) now stands at 6.95 per cent.
The bank will also levy a consolidated processing fee on home loans. This will be 0.40 per cent of the loan amount and GST. SBI had in March waived home loan processing fees till March 31.
The hike in minimum home loan rate by the State Bank of India is likely to prompt other lenders to follow suit.
State Bank of India is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country. The home loan portfolio of the bank has crossed the milestone of Rs. 5 lakh crore.