Loan interest

SBI Home Loan Interest Rates: SBI Raises Home Loan Interest Rates: Check How Much Your EMI Will Increase

After the Reserve Bank of India (RBI) raised the repo rate by 50 basis points to 4.90% last week, many banks raised their lending and deposit rates, the latest to rise. to be attached is the SBI. The bank raised the minimum interest rate for home loans to 7.55%.

The latest increase means that the minimum rate for a borrower with a credit score of over 800 under the regular home loan program is now 7.55%.

According to the bank’s website, the lender has also increased its lending rate based on the external benchmark (EBLR) to a minimum of 7.55%, from 7.05% previously. However, the risk premium will be added based on the credit rating.

Effective June 15, 2022, the SBI revised the marginal cost of funds-based lending rates (MCLR) to 0.20%.

The benchmark one-year MCLR rate was raised to 7.40% from 7.20% previously. The majority of consumer loans, including auto, home, and personal loans, are tied to MCLR.

Borrowers with a credit score of 800 or higher will pay a minimum interest rate of 7.55% on conventional home loans. The risk premium is zero in this case. The CIBIL score determines the risk premium; the lower the credit rating, the higher the risk premium rate.
The interest rate for a credit score between 750 and 799 will be 7.65%, here the risk premium is 10 basis points. Female borrowers will receive a 0.05% discount on these loans.

Once the reset date arrives, borrowers will be forced to pay the higher interest rates on their loans i.e.; Higher EMI or will have their loan term extended if there is a scope of it. If you have an SBI home loan, the following chart shows how much your EMI would increase as a result of the recent interest rate hike.

If your home loan is Rs 35 lakh, the new interest rate of 7.55% applies if your CIBIL score is 800 or above.

Loan amount (Rs) 35,00,000
Term (years) 20
Interest rate (%) 7.05
Former EMI (Rs) 27241
New interest rate (%) 7.55
New EMI (Rs) 28303
Increase in EMI (Rs) 1,062

If your home loan is Rs 70 lakh, the new interest rate of 7.55% applies if your CIBIL score is 800 or above.

Loan amount (Rs) 70,00,000
Term (years) 20
Interest rate (%) 7.05
Former EMI (Rs) 54481
New interest rate (%) 7.55
New EMI (Rs) 56606
Increase in EMI (Rs) 2125

If your home loan is Rs 35 lakh, the new interest rate of 7.55% applies if your CIBIL score is 750-799

Loan amount (Rs) 35,00,000
Term (years) 20
Interest rate (%) 7.15
Former EMI (Rs) 27451
New interest rate (%) 7.65
New EMI (Rs) 28518
Increase in EMI (Rs) 1,067

If your home loan is Rs 70 lakh, the new interest rate of 7.55% applies if your CIBIL score is 750-799

Loan amount (Rs) 70,00,000
Term (years) 20
Interest rate (%) 7.15
Former EMI (Rs) 54903
New interest rate (%) 7.65
New EMI (Rs) 57035
Increase in EMI (Rs) 2132