With effect from April 1, 2021, the State Bank of India (SBI) has raised the minimum interest rate on home loans by 25 basis points (bps), from 6.70 percent to 6.95 percent. SBI's increase in the minimum home loan rate will prompt other lenders to fall into line. On March 1, 2021, SBI cut the minimum interest rate from 6.80 percent to 6.70 percent for a limited duration, until March 31, 2021. A consolidated processing fee will also be charged by the Bank.
This will be 0.4% of the loan amount+GST, with a minimum of Rs 10,000 and a limit of Rs 30,000+GST. The above processing fee will be 0.40 percent of the loan amount, subject to a maximum recovery of Rs 10,000 plus applicable tax, for builder tie-up projects where individual TIR (title investigation report) and valuation are not necessary. According to the Bank's website, if TIR and valuation are required, the standard charge will apply. However, home loan processing fees have been waived by the lender until March 31, 2021.