SBI raises floating home loan rate by 0.5 percent

Mumbai, July 5 (PTI) India's largest lender State Bank
of India Friday increased floating home loan rate by 0.5
percent across all tenors with effect from June 27.

Home loan up to Rs 30 lakh for 20 and 25 year period, the
interest rate has been increased by 0.5 percent to 11 percent
against 10.5 percent, S.B.I. said in a release.

Equated Monthly Instalment (E.M.I.) for 25 years would go
up from Rs 945 to Rs 980 per one lakh while for 20 year E.M.I.
would go by Rs 35 to Rs 1035.

At the same time, housing loan with maturity between 10
and 15 years has gone up to 10.75 percent. EMIs under these
maturities would go up as much as Rs 35.

For five years, the new rate of interest is 10.5 percent,
against 10 percent earlier. E.M.I. in the category would rise
by Rs 25 to Rs 2150 per one lakh.

Similarly, housing loan above 30 lakh category is
increased by 0.5 percent across all tenors. The maximum rate
in the segment went up to 11.25 percent.

However, it has left fixed interest rate on home loan
unchanged at 12.75 percent.

Floating interest rate is linked to State Bank Advance
Rate (SBAR) 12.75 percent per annum, it said. On June 27, the
bank increased its P.L.R. by 0.5 percent.

The decision was taken following Reserve Bank's June 24
announcement of a 0.5 percent hike in its short term lending
rate to banks and cash reserve requirement.

Private sector player like H.D.F.C., I.C.I.C.I. Bank have
already increased home loans rate by 0.75 percent. PTI