India’s leading bank public sector bank State Bank of India (SBI) has revised its home loan rate to 6.95 per cent. The new interest rate has been effective from 1 April 2021.
Earlier this year, SBI brought down its lowest home loan rate to 6.70 per cent. During this offer, for loans of up to Rs 75 lakh, home loan interest rates started at 6.70 percent. Whereas for loans in the range of Rs 75 lakh to Rs 5 crore, the interest rate charged was 6.75 per cent onwards. The offer ended on 31 March 2021.
SBI’s website states that the new interest rates are effective from 1 April.
Compared to the teaser rate for the limited period, the new rate is 25 basis points higher at 6.95 per cent, reported PTI. The report further predicted that the hike in the minimum home loan rate by SBI is likely to prompt other lenders to follow suit.
Under the revised rates, SBI will also levy a processing fee on home loans. It had been waived by the bank during the offer period till 31 March. However, now the processing fee will be 0.40 percent of the loan amount and goods and services tax (GST) subject to a minimum of Rs 10,000 and maximum of Rs 30,000 plus GST, reported PTI.
(With inputs from PTI)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)