Budget 2020

SBI hikes its best home loan interest rate from 6.7% to 6.95%

(This story originally appeared in on Apr 05, 2021)

MUMBAI: The country’s largest lender SBI has said on its website that its home loan rates will start from 6.95%, effective April 1.

Last month, the public sector bank had announced a special offer valid till March 31, wherein home loans were available starting from 6.7%. This indicates that the best rate for home loans has increased by 25 basis points (100bps = 1 percentage point).

According to SBI’s website, home loans are available at 40bps above the external benchmark-linked rate (EBLR). The EBLR, which is linked to the RBI’s repo rate, is currently 6.65%, which would mean that home loans are available at 7%. However, loan proposals that have a woman as one of the applicants are entitled to a 5bps discount, which makes it 6.95%.

In February, SBI had said that its home loan portfolio of Rs 5 lakh crore was the largest among various businesses of the bank and that it was a market leader when it came to individual home loans. The lender had said that it would grow its portfolio by speeding up the turnaround time for loan applications.

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