SBI home loan rates up from March 1

Mumbai: India's largest bank, State Bank of India has hiked home loan rates by half a percentage point.

The hike will be effective on both fixed and floating rates from the first of March. ICICI bank and HDFC bank have already hiked rates by half a percentage point.

While the fixed interest rates will be raised by 0.50- 0.75 per cent, floating rates will be up from 0.25 per cent to 0.50 per cent.

The bank has also withdrawn the facility of offering fixed rates for loans of tenure exceeding 10 years.

Floating rate on loans of tenure up to five years will be increased to 8.50 per cent per annum against current 8 per cent.

The loans of tenure above five years and up to 15 years will carry minimum 8.75 per cent floating rates, up 0.25 per cent from present 8.50 per cent.

For the loans of tenure above 15 years and up to 20 years the floating rates will be hiked to minimum 9.25 per cent from the existing 8.75 per cent.

The fixed interest rates of tenure up to five years will be increased to 9.25 per cent from 8.50 per cent at present.

Loans with tenure of 5-10 years will draw 9.50 per cent fixed interest rates against lower 9 per cent for loans between 5 to 15 years.

At present, the bank charges 9.25 per cent fixed interest for loans above 15 years and up to 20 years, but in the new scheme of things it would not offer any fixed rates for loans exceeding 10 years.

(With PTI inputs)