SBI hikes home loan rate to 6.95%

The country’s largest lender State Bank of India (SBI) has revised its home loan rate to 6.95% from 1 April.

With the amendment, the minimum rate of 6.70% governance for a limited period expired on 31 March.

During the limited period, the bank offered home loans starting at 6.70% for loans up to ₹ 75 lakh and 6. 75 lakh-. 6.75% for loans in the range of 5 crores.

The new rate effective from April 1, according to information posted on its website, is 6.95%.

The new rate is 25 basis points 6.95% higher than the teaser rate for a limited period.

The rise in the minimum home loan rate by SBI is likely to lead other lenders to follow suit.

The bank will also levy a consolidated processing fee on the home loan. This loan amount and 0.40% of Goods and Services Tax (GST) will be subject to a minimum of ₹ 10,000 and a maximum of ST 30,000 plus GST.

Last month, SBI waived home loan processing fees by 31 March to cash in on festive enthusiasm.