Mumbai: Country's largest bank State Bank of India (SBI) has hiked home loan rates by 25 basis points. The increased hike will be in effect from 1st may.
This is to overcome the pressure from Finance Ministry to keep rates under check on the public sector banks. These are the second round of rate hikes after the risk weightage hike in the credit policy and other banks may soon follow.
The fixed rate element has gone up by 0.25 per cent for loans, hence, the interest on loans for up to five years is raised to 9.50 per cent from 9.25 per cent.
Housing loans for a period above 5 years and up to 10 years will now attract an interest rate of 9.75 per cent per annum instead of 9.50 per cent.
The bank upwardly revised its State Bank Advance Rate (SBAR) by 50 basis points or half a percentage to 10.75 per cent per annum.
The floating rates linked to SBAR for loan period up to 5 years will be 2 per cent below SBAR with minimum 8.75 per cent instead of 1.5 per cent below SBAR with minimum 8.5 per cent per annum.
For loans above 5 years but less than 10 years, the interest rate will be 1.50 below SBAR with minimum 9.25 per cent instead of a minimum of 8.75 per cent.
For loans of above 10 years and up to 15 years the minimum floating rate will be minimum 9.25 per cent from existing 9 per cent. Also, the loans of above 15 years and up to 20 years, the floating rates will be minimum 9.75 per cent, half a percentage more than existing rate of 9.25 per cent.
ICICI Bank has also raised its home loan rates by 50 basis points from March end.
While HDFC Bank increased home loan rates by 50 basis points, IDBI Ltd increased lending rates by 25 basis points.
Earlier in March, UTI Bank and HSBC have hiked home loan rates by 0.5 per cent. UTI Bank has also raised its corporate PLR by 100 basis points from 12 per cent to 13 per cent.
HSBC has hiked its benchmark home loan rate from 8.5 per cent to 9 per cent, while UTI Bank has hiked it from 7.5 per cent to 8 per cent.
With Agency inputs
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