SBI home loans restored to original rates, not hiked, says lender in clarification

State Bank of India has clarified that it did not increase interest rates on home loans but rolled back special concessions announced during festive season

The State Bank of India (SBI) on Wednesday stated that it did not hike home loan interest rates, rejecting media reports which stated otherwise. It clarified that limited period special concession offered during the festive season came to an end on March 31, 2021 after which home loan interest rates are back to normal.

“In the last few days, there have been news items reported in the press including media regarding hike in SBI Home Loans Interest Rates. In this regard we clarify that limited period special concessions offered during festive season have come to an end on 31 March 2021 and thereafter withdrawn,” said SBI in a statement.

It added that the pre-concession interest rate of 6.95% has been restored on home loans but the special concession offer to women continues.

The public lender had waived off processing fees on home loans till March 31. As part of its festive season offer, the bank offered home loans starting from 6.70% on borrowing of upto Rs 75 lakh and 6.75% on loans from Rs 75 lakh to Rs 5 crore. It also waived off processing fees.

As mentioned on SBI’s website, its home loans are available at 40 bps above the external benchmark-linked rate (EBLR). The EBLR, which is linked to the RBI’s repo rate, is currently 6.65%, which would mean that home loans are available at 7%. However, loan proposals that have a woman as one of the applicants are entitled to a 5 bps discount, which makes it 6.95% (1%=100 basis points).

The consolidated processing fee will be 0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and maximum of Rs 30,000 plus GST, according to SBI website.