SBI Hikes Home Loan Interest: The country’s largest government bank has given a blow to the dreams of the people who are planning to buy a house. State Bank of India (SBI) has decided to increase interest rates on home loans. The bank has increased 25 basis points in the upper band of interest rates. Earlier SBI’s home loan interest was between 7.50% to 8.45%, but now it has increased between 7.50% to 8.70%. That is, the lower limit has been kept the same, while the upper limit has been increased.

It is worth noting that in July also, SBI’s interest rate range was 7.50% to 8.45%. After this new change, now new customers will have to pay interest from 7.50% to 8.70%.

SBI shock to home buyers

In the end of July, Union Bank of India also increased the interest rates from 7.35% to 7.45%. In private banks, ICICI is providing home loans at 8%, HDFC 7.90% and Axis Bank 8.35% at the minimum interest rate.

This increase has been made by the bank at a time when the RBI is constantly trying to give relief to the people by cutting the repo rate. This step of SBI will affect especially the customers whose credit score is low, as the upper interest rate limit has been increased.

It is believed that after SBI, other public sector banks can also take such steps soon. According to the ET report, this change will currently be applicable only to new home loan customers.