Bad news for SBI customers, home loan interest rates hiked

The State Bank of India will also levy a consolidated processing fee on home loans which it had waived off till March this year.

New Delhi: Country's largest lender State Bank of India (SBI) has hiked its home loan by 25 basis points (bps) effective from April 1, 2021.

After the latest revision, the lowest rate of 6.70 percent regime for limited period ended in March 31. SBI has now revised its home loan rates from 6.70 percent to 6.95 percent.

During the limited period that ended in March, SBI had offered home loan starting from 6.70 percent for loans up to Rs 75 lakh and 6.75 per cent for loans in the range of Rs 75 lakh-Rs 5 crore.

The State Bank of India will also levy a consolidated processing fee on home loans. This 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. Last month, SBI had in waived off home loan processing fees till March 31.

SBI had in February this year said that the Real Estate and Housing Business unit of SBI has grown 5 times in the last 10 years with an AUM of Rs. 89000 crore in 2011 to Rs. 5 trillion in 2021. Despite a massive setback to the real estate sector triggered by pandemic-induced lockdown, the REHBU vertical registered unparalleled growth in the home loan business.