The revised interest rate on State Bank of India home loans is likely to prompt other lenders to follow suit. This is a sign that the interest rates on home loans will be further increased. Here’s all you need to know:
SBI raised the minimum interest rate on home loans from April 1, 2021 (Photo: Reuters)
The country’s largest public lender, the State Bank of India (SBI), recently raised the minimum mortgage interest rate by 25 basis points (bps), from 6.70% to 6, 95%. The interest rate hike on SBI home loans came into effect on April 1, 2021.
SBI’s hike in mortgage interest rates will likely prompt other lenders to follow suit in the near future. This is a sign that the interest rates on home loans will be further increased.
It can be noted that the the public lender lowered the minimum interest rate to 6.70% by 6.80 percent on March 1, 2021. However, this was a limited time offer for interested buyers.
The bank not only increased the minimum interest rate from April, but added processing fees on all home loans. SBI is expected to charge 0.40 percent of the loan plus GST – subject to a minimum of Rs 10,000 and a maximum of Rs 30,000 plus GST – as a processing fee.
SBI, however, has mentioned on its website that for builder’s mooring projects where the TIR survey and assessment report or individual title is not required, the processing fee will be 0.40%. of the loan amount, subject to a maximum amount of Rs 10,000 plus GST. .
In a scenario where the TIR is required, normal charges will apply. Previously, the bank waived mortgage processing fees until March 31, 2021.
Last month, SBI said its Rs 5 lakh crore home loan portfolio was the largest, making it a market leader in the segment. Not only SBI, but other banks like HDFC Bank, ICICI Bank and Bank of Baroda are also expected to increase mortgage interest rates soon.
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