SBI ups home loan rates by 50bps
Mumbai: The country’s biggest lender State Bank of India (SBI) has hiked interest rates on home loans by 50 basis points (100bps = 1 percentage point) to 7.55%. The new rates are effective June 15 and follow the Reserve Bank of India’s decision to hike the repo rate by 50bps. Axis Bank too has hiked its lending rate and now offers loans to its best customers (with score of over 800) at 7.6%.
Last week, the country’s largest housing finance company HDFC had hiked its home loan rates by 50bps to 7.55%. The increase in the rates would mean that the EMI on a Rs 1 crore, 20-year home loan would rise by little over Rs 3,000. SBI’s 7.55% rate is available for regular home loans where the borrower has a credit score of over 800. The lending rate goes up with every 50-point dip in the credit score.
Those with credit scores between 750 and 799 will pay 7.65%, and borrowers with 700-749 scores will get loans at 7.75%. New-to-credit borrowers who do not have a credit score will not get loans below 7.75%. The bank will charge a premium of 10bps on loans up to Rs 30 lakh that have a loan-to-value ratio of more than 80%.