SBI increases interest rates on home loans, ends waiver on processing fee; check new rates here
New Delhi | Jagran Business Desk: In a major setback for its lakhs of customers, India's largest public sector bank, the State Bank of India, has revised the interest rates on the home loans provided by it from April 1, 2021. As per the new rates, the home loans of SBI have gone expensive and the interest rates on home loans have been increased from 6.70 per cent to 6.95 per cent.
The State Bank of India (SBI) had earlier lowered the initial interest rate on home loans to 6.70 per cent to boost the demand in the real estate sector which is reeling under the cascading effect of the coronavirus pandemic. The bank had reduced the initial rate of home loan up to Rs 75 lakh to 6.70 per cent and the initial rate of interest for a home loan between Rs 75 lakh and Rs 5 crore to 6.75 per cent. However, this limited offer expired on 31 March following recent amendments.
According to information available on the State Bank of India's website, the effective new rate of home loan will apply from April 1, 2021, and is 6.95 per cent. Many other banks, housing finance companies can now also increase the interest rate on home loans after the country's largest bank has increased the home loan.
In another jolt, the State Bank of India will now also charge processing fees on home loans. According to the information provided by the bank, it will charge a processing fee of 0.40 per cent of the total loan amount. GST will also be payable along with processing fees. The bank will charge a minimum of Rs 10,000 and a maximum of Rs 30,000 and GST as processing fees.
Last month, keeping in mind the festive season, SBI continued to waive processing fees on home loans. The increase in the home loan rates of SBI may have an impact on the demand of the real estate sector. Anuj Puri of Anarock at Jagran Dialogues also noted that the real estate sector has seen good sales in the last two quarters, with the home loan interest rate at its lowest in the past decade and a half.
Posted By: Talibuddin Khan
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