SBI home loan becomes 0.25% costlier, know latest interest rate, reprocessing fees will also be levied

The country's largest bank State Bank of India has updated the interest rate on home loans. SBI has increased the interest rate on home loans to 6.95 percent. This interest rate on home loan has come into effect from April 1. Earlier, the minimum interest rate for SBI Home Loan was 6.70 percent, whose deadline was met on 31 March 2021.

SBI had offered a home loan of up to Rs 75 lakh for a limited period at 6.70 per cent interest. At the same time, the interest rate on home loan of 75 lakh to five crore rupees was 6.75 percent. According to the information put on the SBI website, the new interest rate of 6.95 percent has become effective from April 1. The new rates are 0.25 per cent higher than the limited term offer. After SBI increases the minimum home loan rates, other banks can also take similar steps.

Processing fees also apply

The bank has also levied an integrated processing fee on home loans. This will be 0.40 percent of the loan amount and in the form of Goods and Services Tax (GST). The processing fee will be a minimum of Rs 10,000 and a maximum of Rs 30,000 (and GST). Last month, SBI announced waiving the processing fee on the home loan by 31 March.

Home loan interest rate lowest in a decade

If you are planning to buy a house, then this is the right time. In fact, in the wake of high liquidity, general credit demand remained below the desired level, the major banks of the country have reduced their home loan rates to a decade low. These include State Bank of India (SBI), HDFC Limited (HDFC Ltd), ICICI Bank (ICICI Bank) and Kotak Mahindra Bank.

Policy rate reduced by 2 percent in the Corona era

Apart from this, Reserve Bank of India (RBI) is also pressurizing banks to cut interest rates in line with the reduction in policy rates. Since March 2020, the Reserve Bank has reduced the repo rate from 2 per cent to 4 per cent. However, despite this the demand for loan is less than 6 percent. Now SBI has increased the interest rate, so it is possible that other banks will also increase the interest rates on home loans.