SBI Shocks Home Loan Customers, Raises Interest Rates – Here’s why

Mumbai: Across India, countless people are fulfilling their dream of owning a house with the help of home loans. Different banks offer these loans at varying interest rates. Now, the country’s largest public sector bank – State Bank of India (SBI) – has increased its home loan rates. This means borrowing from SBI will become costlier, and existing borrowers will also see their EMIs rise.

SBI hikes home loan interest rates

SBI has raised its home loan interest rates by 25 basis points. With this revision, SBI’s home loan rates now range between 7.50 percent and 8.70 percent, compared to the earlier 7.50 percent to 8.45 percent.

Why SBI raised home loan rates

According to SBI, home loan interest rates depend on the customer’s CIBIL score and are linked to the External Benchmark Lending Rate (EBLR). By increasing the rates, the bank aims to cover credit risk more effectively.

Home loan rates of private banks

Among private sector players, HDFC Bank currently offers home loans starting at 7.90 percent, ICICI Bank at 8 percent, and Axis Bank at 8.35 percent.