The country's leading state-run lender SBI has increased home loan rate for new borrowers by 20 basis points. 1 basis point is one-hundredth of a percentage point.
This comes at a time when the bank has announced a cut in its MCLR (marginal cost of funds based lending rate) rate across tenures by 15 basis points. The new hiked home loan rate becomes effective from May 1.
Earlier, the bank has slashed its external benchmark rate by 75 bps after the RBI preponed its monetary policy meet as an emergency call and slashed repo rate to its lowest ever rate.
Notably, the hike in home loan rate has been made by widening the spread over the repo-linked external benchmark rate and now from the earlier 15-30 bps it now ranges between 35-70 bps.
Note: Women borrowers are offered 5 bps concession.
|SBI Home loan amount||Effective new rate from May 1||Earlier rate|
|Upto Rs. 30 lakh||7.4%||7.2%|
|Over Rs. 30 lakh to Rs. 75 lakh||7.65%||7.45%|
|Rs. 75 lakh and above||7.75%||7.55%|
The revision in spread is unlikely to affect existing home loan customers of the bank as barring the credit risk premium once the agreement is signed the components of the spread cannot be altered for a period of 3 years.