Planning To Take Home Loan? SBI Raises Home Loan Interest Rates; Check Comparison With HDFC, ICICI, CBI, etc

India's largest mortgage lender, the State Bank of India (SBI) has raised home loan interest rates by 25 basis points. The public sector bank has revised the upper band of home loan rates by 25 bps from 1 August. However, the lower band of the home loan rates remain as it is.

SBI's revision of home loan rates is likely to impact the equated monthly installments (EMIs) of borrowers whose loans fall in the higher rate category.

What Are The New SBI Home Loan Rates?

The new home loan rates came into effect frm 1 August. According to the SBI's official website, Home loan for the (term loan category) will be given at a rate of 7.5% to 8.7%. Whereas, SBI home loan Maxgain (OD) rate has been fixed at 7.75% to 8.95%. SBI Top Up loan rates have been fixed at 8%-10.75%. Loan Against property (P-LAP) stood at 8.25% to 9.45%. YONO Insta Home Top Up Loan stood at 8.35%.

\All SBI home loans remain linked to the external benchmark lending rate (EBLR), currently at 8.15%. Additionally, individual interest rates depend on the borrower's CIBIL score, as per standard practice.

What Will Be the Impact On SBI Home Loan Borrowers?

This adjustment comes as banks align their lending rates with market conditions, potentially affecting home buyers' affordability in the short term. The revised rates mean that borrowers with higher interest loans will face increased monthly payments, impacting their financial planning and budgeting. SBI's decision reflects broader trends in the banking sector, where institutions adjust lending rates based on economic factors and market dynamics.

SBI vs PNB vs CBI vs ICICI vs Axis Bank Home Loan Rates

Central Bank of India stands among the government-run banks with lowest interest rates on home loans. The CBI offers home loan at a starting rate of 7.35% per annum. Whereas, ICICI Bank offers home loan rates starting at 7.7% per annum. Axis Bank offers home loan rates starting at 7.9% per annum. The home loan rates by banks are subject to revision, and readers must contact with the banks to get clear information about latest home loan rates.

Banks	Starting Interest Rate (p.a.)
Central Bank of India	7.35% p.a. onwards
State Bank of India	7.50% p.a. onwards
LIC Housing Finance	7.50% p.a. onwards
ICICI Bank	7.70% p.a. onwards
HDFC Home Loans	7.90% p.a. onwards
Axis Bank	8.35% p.a. onwards
Bank of India	8.40% p.a. onwards
PNB Housing Finance	8.25% p.a. onwards

The revision by the SBI for its home loan rates has come weeks after the Reserve Bank of India (RBI) announced to keep the repo rate unchanged at 5.5% for the next two months. The home loan rates were revised by the banks over the past few months after the RBI announced a whopping 50 basis points reduction in repo rates in June this year.