SBI raises home loan rates by 25 bps: Check what its rivals are offering

A look at how major banks and housing finance companies are pricing their loans for new borrowers.

State Bank of India (SBI), the country’s largest lender, has raised its home loan interest rates by 25 basis points (bps) for new borrowers. The revision from August 1 will mostly affect applicants with low credit scores, as the bank has widened the upper band of its lending rates.

 

SBI’s new home loan rates

SBI’s annual interest rates now range from 7.5 per cent to 10.55 per cent, depending on the loan and borrower profile.

 

• Home Loan (term loan): 7.5 per cent to 8.7 per cent 
• Home Loan Maxgain (OD): 7.75 per cent to 8.95 per cent 
• Top-up Loan: 8 per cent to 10.75 per cent 
• Top-up (OD) Loan: 8.25 per cent to 9.45 per cent 
• Loan Against Property (P-LAP): 9.20 per cent to 10.75 per cent 
• Reverse Mortgage Loan: 10.55 per cent 
• YONO Insta Home Top-up Loan: 8.35 per cent

 

Home loans remain the single-largest segment of SBI’s retail portfolio, making rate changes significant for millions of potential borrowers.

 

 

How other banks compare

 

According to Paisabazaar.com data, here’s how some banks stack up:

 

• Bank of Baroda: 7.45 per cent to 9.50 per cent 
• Punjab National Bank: 7.45 per cent onwards 
• Canara Bank: 7.40 per cent to10.25 per cent 
• Kotak Mahindra Bank: 7.99 per cent onwards 
• HSBC Bank: 7.70 per cent onwards 
• Bandhan Bank: 8.41 per cent to 15 per cent 
• LIC Housing Finance: 7.50 per cent onwards 
• Bajaj Housing Finance: 7.35 per cent onwards

 

What this means for borrowers

 

SBI hiking rates means borrowers with low credit score will have to pay more for loans. Experts say home-loan customers should:

 

• Check offers across multiple banks and housing finance companies. 
• Improve their credit score to qualify for lower rates. 
• Consider tenure, EMI affordability, and additional charges before locking in a loan.