The home loan of the country’s largest bank State Bank of India has become expensive from April 1. The bank has revised the home loan interest rate. Now the home loan rate of the bank is starting from 6.95 percent. Earlier, the bank had reduced the starting rate of home loan to 6.70 percent to increase the demand in the real estate sector. The bank had reduced the starting rate of interest for home loans up to Rs 75 lakh to 6.70 per cent and for home loans of Rs 75 lakh to Rs 5 crore at 6.75 per cent. However, after the recent revision, this limited offer expires on March 31.
According to the information available on the website of State Bank of India, the effective new rate of home loan from April 1 is 6.95 percent. After the increase in home loan by the country’s largest bank, many other banks, housing finance companies may increase the interest rate on home loans.
State Bank of India will now charge processing fee on home loan as well. According to the information provided by the bank, it will charge a processing fee of 0.40 percent of the total loan amount. GST will also be payable along with the processing fee. The bank will charge a minimum of Rs 10,000 and a maximum of Rs 30,000 plus GST as processing fee.
Last month, keeping in mind the festive season, SBI continued with the waiver of processing fees on home loans. The increase in the home loan rate of SBI can affect the demand of the real estate sector. Anarock’s Anuj Puri in Jagran Dialogues also pointed out that the real estate sector witnessed good sales in the last two quarters due to the low interest rates on home loans in the last decade and a half.