State Bank of India (SBI), which is the country’s largest lender, revised its home loan rate to 6.95 per cent and the new rates will come to effects from April 1st. Prior to this, the interest was at the lowest rate of 6.70 per cent for the period ended on March 31 during which 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 to ₹5 crore.
In addition to this, the bank said that it will also impose a consolidated processing fee on home loans which will be 0.40 per cent of the loan amount and goods and services tax (GST) subject to a minimum of ₹10,000 and a maximum of ₹30,000 plus GST. This would happen in cases where individual TIR or title investigation report and valuation is not required. In case, TIR is required, the bank’s normal charges will be applicable. Owing to the festive season, the bank had earlier waived off home loan processing fees till March 31.
Last month, SBI said that with a home loan portfolio of ₹5 lakh crore, the lender is the market leader in the segment as it has the lion share
The increase in the minimum home loan rate by the lender could prompt such hikes by other banks as well as banks like HDFC Bank, ICICI Bank and Bank of Baroda are also expected to increase home loan interest rates soon.
Last month, SBI said that with a home loan portfolio of ₹5 lakh crore, the lender is the market leader in the segment as it has the lion share. The bank is the largest commercial bank in India in terms of assets, deposits, branches, customers, and employees. The bank, which is headquartered in Mumbai, is the 43rd largest lender in the world and has a market share of 23 per cent in terms of assets and a market share of 25 per cent in terms of total loans and deposits.