SBI home loan interest rates rise from today, but there’s a catch. Details here

Let’s see how much interest rates will be levied on home loans!

SBI external benchmark lending rate:

As per the website, from December 15, the EBLR has been hiked to 8.90%+credit risk premium (CRP) + BSP. This is a 35 bps hike from the previous rate of 8.55%.

Further, the banker hiked repo linked lending rate also by 35 bps to 8.50% plus CRP compared to the earlier 8.15%.

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SBI MCLR rates:

For this lending rate benchmark, SBI has hiked interest rates by 25 bps across tenure. 1-year and six-month MCLR rates are now at 8.30% each versus the previous 8.05% each, while two-year and three-years MCLR from December 15 comes at 8.50% and 8.60% compared to the previous 8.25% and 8.35% respectively.

Meanwhile, three-month and one-month MCLR comes at 8% each compared to the previous 7.75%. Overnight MCLR is at 7.85% from the previous 7.60%.

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SBI home loans interest rates:

The bank had launched a festive campaign over from October 4th just ahead of the Diwali festival. The offer will continue till January 31, 2023.

Under the festive offer, the bank is currently offering a concession from 15 bps to 30 bps in various home loan categories. However, the rates have increased from before December 15.

For instance, earlier, the floor rate was 8.55% which is an external benchmark rate plus spread, and under the festive offer, there was a concession of 15 bps which led the rate to as low as 8.40%.

Now from December 15, the floor rate has risen by 35 bps to 8.90%. And hence, under the festive offer, the home loan rate comes to around 8.75% — which is also a 35 bps rise from the previous rate of 8.40%. Hence, your EMIs have gone up!

However, it needs to be noted that SBI continues to offer 15 bps to 30 bps concessions on its home loan rates.

Borrowers who will opt for SBI home loans will receive these concessions on their interest rates till January 31, 2022. That being said, the interest rate of as low as 8.75% versus the normal rate of 8.90% is only available till January 31st. Also, to enjoy the lowest home loan rates, a borrower needs to know that their credit score will matter.

Here are SBI’s latest home loan rates under the festive offer:

Regular home loans including Flexipay, NRI, Non-salaried, Privilege/ Shaurya, Apon Ghar:

On CIBIL score greater or equal to 800, SBI is giving a concession of 15 bps to borrowers on home loans — taking the rate to 8.75% from the normal rate of 8.90%. On credit scores from 750 – 799, home loans have a concession of 25 bps to 8.75% from their normal rate of 9%. Further, on credit scores of 700 -749, home loans have a concession of 20 bps to 8.90% from their normal rate of 9.10%.

However, the home loan rates on credit scores lower than 700 are unchanged. Hence, SBI’s rate is at 9.20% on credit scores from 650 – 699, at 9.40% on scores of 550 – 649, and at 9.10% on NTC/NO CIBIL/-1.

In its revised festive offer, SBI said, “Floor Rate: 15 bps lower than EBR (i.e. 8.75 %), EBR at present- 8.90%.” Also, it added that the rates are inclusive of a 5bps concession available to women borrowers and 5 bps concession. Further, these rates are available for salary account holders for Privilege, Shaurya & Apon Ghar as well.

Lastly, it said, “Premium of 10 bps for loans up to 30 lacs for LTV >80% & < =90% shall continue to be charged hitherto.”

Top-up home loans:

There is a concession of 15 bps each on credit scores from 700 to equal to or greater than 800 on top-up loans.

From December 15, top loans have an interest rate of 9.15% on credit scores of greater or equal to 800 from the normal rate of 9.30%, while the rate is 9.25% on scores of 750 – 799 from the normal rate of 9.40%, and the rate is at 9.35% on scores of 700 -749 from the normal rate of 9.50%. The remaining rates are unchanged.

The bank continues to levy 9.60% on credit scores of 650 – 699; 9.90% on scores of 550 – 649; and 9.50% on NTC/NO CIBIL/-1 scores.

Loan Against Property:

A concession of 30 bps is offered on credit scores from 00 to equal to or greater than 800.

Accordingly, the rate is at 10.35% versus the normal rate of 10.65% on CIBIL greater or equal to 800, while the rate is at 10.45% versus the normal rate of 10.75% on scores from 750 – 799; and the rate is at 10.55% versus the normal rate of 10.85% on scores of 700 -749.

Other rates are unchanged. The bank continues to impose 10.95% on credit scores of 650 – 699; 11.05% on 550 – 649 scores; and 10.85% on NTC/NO CIBIL/-1 scores.

Processing Fee Waiver:

The bank has waived processing fees under the festive offer on home loans and top-up loans. While the bank has levied flat ₹10,000 plus applicable GST on the loan against the property.