Mortgage Loan Interest Rates: SBI Bank Announces Changes

New Rates Effective from April 1, 2023

Key Highlights:

• SBI Bank has revised its mortgage loan interest rates.
• The changes will be effective from April 1, 2023.
• The new rates range from 8.05% to 9.05%.

State Bank of India (SBI), the country's largest lender, has announced changes to its mortgage loan interest rates. The new rates will be effective from April 1, 2023.

Under the revised rates, the interest rate on home loans up to Rs. 30 lakh has been reduced by 0.15%, from 8.20% to 8.05%. For loans above Rs. 30 lakh and up to Rs. 75 lakh, the interest rate has been reduced by 0.10%, from 8.30% to 8.20%.

For loans above Rs. 75 lakh, the interest rate has been increased by 0.05%, from 8.40% to 8.45%. The interest rate on loans for affordable housing projects has been kept unchanged at 8.05%.

The new interest rates are applicable to both new and existing customers. SBI has also introduced a special interest rate of 7.90% for women borrowers on home loans.

The revision in interest rates is in line with the Reserve Bank of India's (RBI) recent decision to increase the repo rate by 25 basis points to 6.50%. The RBI has been raising interest rates to combat rising inflation.

The increase in interest rates is likely to have a negative impact on the demand for home loans. However, SBI's special interest rate for women borrowers may help to offset some of the impact.