The country’s largest lender State Bank of India (SBI) has revised its home loan rate to 6.95 per cent effective April 1. With the revision, the lowest rate of 6.70 per cent regime for a limited period ended on March 31. As per information posted on its website, the new rate effective April 1 is 6.95 per cent, news agency PTI reports. The hike in minimum home loan rate by SBI is likely to prompt other lenders to follow suit.
The bank has not only increased the minimum interest rate from April but has added a processing fee on all home loans. SBI is expected to charge 0.40 per cent of the loan plus GST subject to a minimum of ₹10,000 and a maximum of ₹30,000 plus GST as a processing fee.
Last month, SBI had waived off home loan processing fees till March 31 to cash in on festive fervour. During the limited period, the bank offered home loan starting from 6.70 per cent for loans up to ₹75 lakh and 6.75 per cent for loans in the range of ₹75 lakh- ₹5 crores.
The lender also gave a 100% waiver on processing fees. The interest concession was based on the loan amount and CIBIL score of the borrower.
On the eve of International Women’s day, a special 5 bps concession was being made available to the women borrowers.
Last month, SBI said that its home loan portfolio of ₹5 lakh crore was the largest, making it a market leader in the segment.