SBI raises minimum interest rate on home loans by 25 basis points to 6.95%

Clearly signaling that the cycle of soft interest rates for home borrowers is over, the State Bank of India (SBI) has raised the minimum interest rate on home loans by 25 basis points (bps) from 6, 70% to 6.95% with effect from April. 1, 2021.

This increase in the minimum mortgage rate by SBI will encourage other lenders to follow suit.

SBI had lowered the minimum interest rate from 6.80% to 6.70% on March 1, 2021 for a limited period until March 31, 2021.

The Bank will also charge a consolidated processing fee. This amount will be 0.40% of the loan amount plus applicable GST, subject to a minimum of ₹ 10,000 and a maximum of ₹ 30,000 plus GST.

However, for builder capital projects where individual TIR (Title Investigation Report) and appraisal is not required, the aforementioned processing fee will be 0.40% of the loan amount, subject to recovery of up to ₹ 10,000 plus applicable taxes. And, if TIR and Assessment are required, normal fees will apply., According to the Bank’s website.

The lender had waived the mortgage processing fee until March 31, 2021.

In February, the Bank announced that it plans to double its mortgage portfolio over the next five years to Rs 10 crore lakh, thanks to higher economic growth and the growing preference of the new generation for buy a house early.

SBI took around 10 years to bring its ₹ 89,000 crore home loan portfolio in FY2011 to the ₹ 5 lakh crore mark, Chairman Dinesh Kumar Khara told media in February 2021.

SBI took around 10 years to bring its ₹ 89,000 crore home loan portfolio in FY2011 to the ₹ 5 lakh crore mark, Chairman Dinesh Kumar Khara told media at a press meeting in February 2021.

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